"Temporary layoffs" part of Nokian cost-saving measures

Nokia, Finland – Nokian Tyres plc is taking measures, including job cuts, to face “significant additional operating costs” anticipated for the year 2019.

The costs are due to ongoing investment programmes in R&D, recruitment for the Dayton, Ohio factory and IT improvements, according to CEO and president Hille Korhonen.

In addition, Nokian has focused on efficiency improvements and adjusting cost base in the second quarter, said Korhonen in a 6 Aug conference call.*

“We have been doing some savings in other operational activities and also we have been adjusting the capacity in our Finnish factory in Nokia to lower demand through temporary layoffs,” the Nokian boss added.

Amongst others, the efficiency measures include structural changes in the Nordics region, combining the tire maker’s Norwegian and Swedish organisation.

The restructuring, according to Korhonen, is bringing some cost benefits this year and additional cost savings in the coming years. She did not elaborate further.

"It's good to remember that we are the most profitable tire manufacturer...  So there are no huge savings opportunities in other parts of the company," she added.

*Comments in transcript sourced from Seeking Alpha.