Daily Newsletter

04 October 2023

Daily Newsletter

04 October 2023

Signal: Patria Group “change negotiations” will involve redundancies

The company undertook a restructure process in order to increase efficiencies and create a leaner corporate model, stated Patria’s CEO.

Richard Thomas October 04 2023

Finnish defence prime Patria has undertaken a six-week long negotiation period with its staff as it shifts its corporate operational model, aimed at meeting an increased demand for defence capabilities in the sector, as well as improving efficiencies.

The “change negotiations” began on 14 August with relevant personnel, stated a 3 October release, with the aim to create a corporate operating model that was “efficient and lean as possible”, according to Esa Rautalinko, Patria’s president and CEO.

“We now continue the change which started in the beginning of 2022 with Patria’s Horizon 2025 growth strategy. During the negotiations the focus was on Patria’s operations which did not significantly change during the previous operating model change,” Rautalinko said.

“By further improving our efficiency, operational activities and decision-making, we will improve also customer satisfaction and profitability.”

The Patria Group companies included in the negotiations were Patria Oyj, Patria Aviation Oy, Patria Aerostructures Oy, Patricomp Oy and Patria Land Oy. Patria’s Operations and Portfolio units as well as so-called group-level support functions in these companies were in the scope of negotiations.

The 3 October Patria release said the scope of the negotiations covered the group’s line managers and white-collar workers but excluded blue-collar workers with the exception of those in Patria Aviation Oy’s Engines, Components & Training Diesel Engines function in Linnavuori. In addition, as part of Operations unit, Patria Pilot Training Oy and Patria Aviation Oy’s Military Pilot Training were excluded from the scope of negotiations.

The total number of personnel “in scope of the negotiation” was approximately 1,190 and the changes were expected to involve “approximately 310” job roles. The negotiations did not involve temporary layoffs, with the main employment changes being reorganisation, combination, change and reduction of tasks and related redundancies or relocation of employees to new positions.

Further, the release said that the introduction of the new organisation will lead to 56 redundancies, which could increase “if there are employees who do not accept job offers for new roles”.

In addition, the changes will have an impact on some individual job roles in Patria’s operations outside Finland, the company confirmed.  

Patria Oyj job postings static

Patria is majority owned by the Finnish state which maintains a 50.1% share, while the remaining 49.9% held by Norwegian defence group Kongsberg Defense & Aerospace. Active jobs for Patria Oyj from 3 July to 25 September remained relatively static during this time, which incorporates the negotiating period outlined above.

Patria Oyj job listings

Source: GlobalData

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