Škoda Transtech initiates Change Negotiations That May Lead to a Reduction of Employees at Its Finnish Otanmäki Plant

25. 5. 2026

Škoda Transtech initiates Change Negotiations That May Lead to a Reduction of Employees at Its Finnish Otanmäki Plant

Škoda Transtech, part of Škoda Group, has today invited the employees in accordance with the Finnish Co-operation Act to change negotiations regarding organisational changes at its production plant in Finland (including its supporting functions), which may lead to a reduction in the number of headcounts. The reason is the long-term uncertainty related to the tender for the supply of new trams for the city of Helsinki. The company considered this contract to be one of the key projects that, if successful, would have secured work for a significant part of its local workforce. However, the controversial decision of Helsinki Metropolitan Area Transport to exclude the company from the tender and the confirmation of such exclusion by the Finnish Market Court must now be taken into account by the management of Škoda Transtech in its future production planning.

As it is not possible to maintain jobs at the current level over the long term without adequate workload, the company may be forced to terminate employment contracts. During the change negotiations, possible actions may include measures such as terminations, organizational restructuring, and changes in working hours, modifications to job roles and responsibilities, and part-time arrangements. The permanent reduction in workforce is estimated to affect a maximum of 200 employees, which is one third of its workforce in the Otanmäki production facility employing 600 employees.

The eventual changes will not affect Škoda Transtech’s ability to continue production and no current or future commitments of the company are endangered by this decision. Škoda Transtech continues to have sufficient number of qualified employees and production capacity to ensure the smooth delivery of all existing and future projects.

Škoda Transtech is one of the key industrial employers in the Kainuu region of Finland. At its production facility in Otanmäki, the company currently directly employs around 600 people, while the wider impact of its operations extends to nearly 2,000 people through employees’ families and the local community. The company therefore plays an important role in maintaining industrial expertise, economic activity, and long-term employment opportunities in the region.

Finland and the wider Nordic region remain strategic markets for Škoda Group. The company will continue to use the Otanmäki plant for future business opportunities in the Nordic region (including for any further development related to the Helsinki tram tender).

Škoda Transtech, a member of Škoda Group, is among the leading manufacturers of rolling stock in Finland and has long been involved in the production of modern trams and trainsets for Finnish and European customers.