Finnish ship technology company Wartsila has unveiled its plan to axe around 1,200 jobs across its global businesses and support functions in order to save costs.

The move is part of the company’s plan to realign its operations and resources to achieve future profitability and competitiveness.

Subject to consultation processes, proposed cuts will be launched in accordance with the practices and legislation of the affected countries, the company said in a statement.

Wartsila added that its realignment plan focuses on sustainable savings and measures that help increase customer value in an effective way.

With the plan, Wartsila aims to save €100m annually. The targeted savings are anticipated to materialise gradually in the second half of this year, with full effect by the end of next year.

The realignment programme is expected to see an increase in sales and bring stability to business operations.

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The restructuring is expected to cost Wartsila around €75m.

“It is fundamentally important to continuously streamline our operations and align them to market requirements.”

Wartsila president and CEO Jaakko Eskola said: “The business environment around us is changing with increasing speed. Trade tensions, geopolitical uncertainty, and market volatility are sources of concern. We have performed reasonably well in the prevailing market environment, thanks to our Smart Marine and Smart Energy strategies.

“Nevertheless, we must constantly strengthen ourselves to cope with current and future developments.

“To maintain our leading position in the market and to stay strong, agile, and competitive, it is fundamentally important to continuously streamline our operations and align them to market requirements.”

As of last year, Wärtsilä had around 19,300 employees in more than 80 countries worldwide.