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Fuel firm Neste to slash up to 470 jobs, cites drop in oil demand

State-owned oil company Neste blamed the redundancies on a global decline in fossil fuel demand caused by Covid-19.

nesteen kyltti
Image: Ismo Pekkarinen / AOP
Yle News

On Monday Neste announced plans to launch co-determination negotiations in its oil products business that will result in the loss of up to 470 jobs and save the firm some 50 million euros annually.

The coronavirus pandemic has accelerated the decline in demand for oil products, Neste said at a press conference, arguing that current trends favouring renewable energy solutions were likely to continue in the future.

The company said it would transition its Naantali refinery site to terminal and harbor operations while its refinery in Porvoo would begin focusing on renewables.

"The energy transition is proceeding faster than expected. Forthcoming operating and maintenance investments in the Naantali refinery are not viable nor sustainable in a situation where there is large over-capacity for oil refining globally," Neste President and CEO Peter Vanacker said in a statement.

Some 4,000 of Neste's 5,000 global employees work in Finland.

Speaking to reporters on Monday, the company said the planned measures would not affect the security of fuel distribution in Finland.

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