The Finnish forest-machine manufacturer has completed negotiations covering 1,109 employees as demand remains below production capacity. Possible layoffs would last up to 90 days during 2027, with arrangements determined separately across the business.<\/p>\n
Ponsse is preparing for possible temporary layoffs across its Finnish workforce next year after completing employee negotiations on 30 October. The company said the measures would allow it to adjust operations to a weaker market in 2027. Its technology subsidiary Epec was excluded from the negotiations.<\/p>\n
The process covered 1,109 employees, including production workers, other blue-collar staff, salaried employees and senior salaried employees. Ponsse\u2019s initial announcement on 20 October allowed for either full-time or part-time temporary layoffs. Permanent redundancies were outside the scope of the negotiations.<\/p>\n
Chief executive Juho Nummela said detailed arrangements would depend on conditions in individual functions. The agreement does not mean that the entire workforce will stop working for 90 consecutive days. Ponsse intends to maintain normal customer service throughout any adjustments. Its closing announcement did not provide a detailed schedule or quantify expected savings.<\/p>\n
The planned measures centre on matching production at Vierem\u00e4 with demand. Ponsse said its order book was insufficient relative to manufacturing capacity and that profitability had weakened. Uncertainty across the forest industry continues to discourage customers from committing to new machinery, prompting the company to prepare production adjustments for 2027.<\/p>\n
Pressure on machine sales was already apparent in the first half of 2026. Ponsse reported that the Finnish and Swedish markets had contracted significantly in machine volumes, even though its own market share improved in both countries. Sales in the United States and Canada also remained subdued, with customers delaying investment decisions.<\/p>\n
Production had nevertheless recovered earlier in the year. The Vierem\u00e4 factory returned to two shifts in week 11, and capacity utilisation remained relatively high during the second quarter. Quarterly sales rose to \u20ac187.1 million from \u20ac172.3 million, supported by new-machine invoicing and Epec\u2019s performance. The order book, however, had fallen to \u20ac160 million by the end of June, compared with \u20ac192.5 million a year earlier.<\/p>\n
Third-quarter sales fell 7.4% to \u20ac159.8 million, while operating profit declined to \u20ac5.9 million from \u20ac9.6 million a year earlier. The operating margin narrowed to 3.7% from 5.6%.<\/p>\n
That profit included \u20ac3.5 million in US customs-duty refunds. Subtracting this item gives approximately \u20ac2.4 million, or 1.5% of sales, according to GWMI calculations. This is a simple calculation, rather than a company-reported adjusted result.<\/p>\n
Orders nevertheless improved: third-quarter intake reached \u20ac170.4 million, up 18.8% year on year, and the September order book stood at \u20ac170.5 million, against \u20ac163.2 million a year earlier. Some orders extend into 2027. The company attributed part of the improvement to the autumn trade-fair season.<\/p>\n
Inventories remained a problem. New-machine stocks increased as invoicing disappointed, while used-machine sales were insufficient to reduce inventories. Nine-month operating profit fell to \u20ac18.4 million from \u20ac30.2 million. Ponsse retained its forecast for 2026 operating profit broadly matching 2025\u2019s \u20ac41.6 million.<\/p>\n
Ponsse had taken a similar precaution a year earlier. In October 2025, it completed negotiations allowing for up to 90 days of temporary layoffs during 2026, also covering its Finnish workforce and excluding Epec. Production adjustments under that arrangement were scheduled to begin in January 2026, with measures affecting salaried staff to be assessed during the year. The new agreement extends preparations for weak demand into another calendar year.<\/p>\n
The company is continuing selected investments alongside capacity adjustments. Its half-year report described an expansion of the Vierem\u00e4 welding shop and greater automation of welding and internal logistics, intended to improve productivity. Investment priorities also include product development, digital services and the sales and maintenance network.<\/p>","protected":false},"excerpt":{"rendered":"
The Finnish forest-machine manufacturer has completed negotiations covering 1,109 employees as demand remains below production capacity. Possible layoffs would last up to 90 days during 2027, with arrangements determined separately across the business. Ponsse is preparing for possible temporary layoffs … Continue reading