Neste has completed the organisational change process it first announced in November 2023.
The Finland-based oil refiner will merge its three renewable business units - Renewable Aviation, Renewable Road Transportation, and Renewable Polymers and Chemical - into one Renewable Products business unit. It will also restructure its functions ‘to better support business-driven ways of working’, it said in a statement.
Neste has confirmed the restructuring will lead to 320 job cuts in Finland, in addition to an estimated 70 jobs worldwide. The planned organisational changes were expected to lead to a reduction of approximately 400 job roles globally.
“Neste offers its employees support in adapting to the situation in different ways,” the company said in a statement announcing the competition of the organisational change.
The restructuring is expected to result in total annual cost savings of approximately €50 million.
The announcement comes after Neste published its annual report 2023 on March 1, which was due to be published on Feb. 8. The report shows that Neste’s revenue stood at €22,9 billion in 2023 in comparison with €25,7 billion in the previous year. Profit before taxes was €1,59 billion in 2023, a decrease from €2,28 billion in 2022.
The economic woes affecting Neste have had similar effects in many other companies in the plastic industry. Evonik has announced plans to cut 2,000 jobs worldwide alongside a company structuring. Indurama Ventures has also announced a company restructuring following a substantive decline in earnings.