Neste to axe 600 jobs globally, 450 in Finland

The state-run petroleum company Neste is planning to permanently reduce about 600 positions including about 450 in Finland, said the company in a press release on Thursday.

Neste said that it planned to simplify operating model and increase internal efficiency to improve profitability and cost-competitiveness. As a result, the company starts change negotiations that cover globally Oil Products and Renewable Products business areas and all functions, targeting total annual cost savings of about EUR 65 million.

“Our current financial performance is weak and not sustainable. Therefore, we must take urgent action to reset various parts of our company. While understandably hard for Neste people, the planned efficiency measures are necessary to ensure Neste’s long-term competitiveness and success. We will do our best to support our employees in this situation,” said Neste’s President and Chief Executive Officer Heikki Malinen.

Neste continues to seek growth in renewable fuels targeting market leadership, cost competitiveness and technology advantage, said the company in the press release.

As a result of the company’s significantly changed market environment and weakened financial performance as well as a comprehensive full potential analysis started in October 2024, Neste has decided to start a performance improvement program.

The goal is to secure our strong market position and cost competitiveness in renewable fuels and to enhance Neste’s financial performance.

The program targets a total of EUR 350 million EBITDA run rate improvement by the end of 2026, of which EUR 250 million from operational costs.

The Rotterdam growth investment project continues, but schedule and costs have been re-evaluated.

Due to the challenging contractor market, the scheduled start of commercial operations has been delayed from 2026 to 2027. Furthermore, the estimation for investment cost has been increased from EUR 1.9 billion to EUR 2.5 billion.

Several actions have been taken to ensure that the project proceeds on the updated schedule and budget.

Earlier in March 2024, Neste has decided to cut 320 jobs in Finland and 70 more abroad as a part of its restructuring plan.