Škoda Transtech to lay off over 100 after losing Helsinki tram order

Finnish rail vehicle manufacturer Škoda Transtech is laying off 117 employees as a direct result of losing a significant tram order for the Helsinki and Vantaa metropolitan area.

The company announced the layoffs on Tuesday, stating that the decision stems from change negotiations. In addition to the dismissals, Škoda Transtech indicated that targeted furloughs and other measures might be implemented. When the negotiations began, it was estimated that the reduction in work could affect up to 200 employees, with other potential measures impacting as many as 452 staff members.

The critical blow to the company came when it lost the bid for the Western Helsinki and Vantaa tram fleet contract to Swiss competitor Stadler. Škoda Transtech attempted to appeal the decision, but the Market Court found no irregularities in the procurement process. A subsequent appeal for leave to appeal to the Supreme Administrative Court was also rejected in June.

Juha Vierros, CEO of Škoda Transtech, acknowledged the difficulty of the decision for both the company and its employees. "This is a difficult decision for both the company and its employees," he stated in a press release. "We are now focusing on supporting our employees through the transition while ensuring the company's operational sustainability and competitiveness."

Škoda Transtech, a key industrial employer in the Kainuu region, had also filed a complaint with the Finnish Competition and Consumer Authority (KKV) regarding the tender process for new trams in July. The factory is located in Otanmäki, Kajaani.

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This is a difficult decision for both the company and its employees. We are now focusing on supporting our employees through the transition while ensuring the company's operational sustainability and competitiveness.