HELSINKI - Finnish contract carmaker Valmet Automotive said on Tuesday it would cut more than half its 1,600 staff due to slowing demand and a lost assembly contract with General Motors unit Saab.
Valmet, 90 percent owned by engineering group Metso, said in a statement it would temporarily lay off 759 people and allow a number of part-time work contracts to lapse. The employees could be laid off for a year or longer.
"Daily car production will decline in April-May to 70 cars from 182. The reason is the end of Saab production as well as the market situation of the Porsche Boxster," Valmet said.
Valmet had flagged the layoffs in January. Its production of Saab's 9-3 convertible and 5-d model is set to end around this month or next.
German steel and engineering group ThyssenKrupp AG has a 10 percent stake in Valmet. The firm said last June it planned to exercise an option to take the remaining 90 percent from Metso.