Neste, Finland’s energy giant, is set to cut 600 jobs worldwide, with 450 layoffs in Finland as part of a major cost-cutting effort. The decision follows a period of financial decline and increased competition in the renewable energy sector.

Why is Neste Cutting Jobs?

The company cites a weaker financial outlook and rising global competition as the main reasons for the layoffs.

• Declining Profits – Neste’s Q4 2024 profit dropped from €797 million to €168 million in just a year.
• Market Oversupply – A surge in biofuel production worldwide has driven prices down, making it harder for Neste to maintain margins.
• Operational Challenges – A fire at the Rotterdam refinery last fall disrupted production, further straining the company’s financial position.

Impact on Employees

The layoffs will affect various departments, and employees will be offered transition support and retraining programs. This comes after 320 job cuts in Finland last year, making it a particularly tough period for Neste’s workforce.

CEO Heikki Malinen described the situation as a difficult but necessary step to secure the company’s future.

Neste’s Stock Takes a Hit

Following the announcement, Neste’s stock price dropped, reflecting investor concerns over the company’s long-term growth strategy.

What’s Next?

Despite setbacks, Neste remains a key player in the renewable energy sector. However, the biofuel market is evolving rapidly, and the company must adapt to remain competitive.

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