Outokumpu cuts 2,500 jobs to save $455 million

Finnish stainless steel maker Outokumpu sheds 2,500 global jobs to save$455 million

Associated Press

HELSINKI (AP) -- Finnish metals group Outokumpu Oyj says it will slash 2,500 jobs worldwide in the next four years to cut costs by 350 million euros ($455 million) and improve profitability as stainless steel demand continues to fall.

The world's leading stainless steel maker says about a third of the job cuts will be applied this year, mostly in Germany, Sweden and Finland, in line with production capacity reductions and streamlining.

Outokumpu says it slid into a first-quarter net loss of 152 million euros from a slight profit a year earlier despite a 70 percent surge in revenue to 2.2 billion euros. Stainless steel deliveries fell 7 percent in the quarter to 703,000 tons.

Outokumpu stock was up more than 2 percent at 0.47 euros in Helsinki in Thursday afternoon trading.

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