The mining company Terrafame is commencing significant restructuring talks, anticipating the need to reduce 120 jobs due to financial losses and aims for annual savings of 10 million euros.
Terrafame, a mining company based in Finland, announced on Friday that it will begin comprehensive restructuring negotiations affecting its entire staff for production and financial reasons. As of the end of 2025, Terrafame employed 887 individuals, and it estimates that it will need to reduce 120 personnel equivalents, with the aim of achieving annual savings of 10 million euros. The company is taking this step in the context of challenging financial performance and increased operational costs, including higher mineral taxes.
In 2025, Terrafame reported a substantial loss of 35 million euros, as it released its financial results on Friday. The company also noted a decrease in revenue, which contracted by 5.9% to 182.2 million euros. These financial difficulties have prompted the company to seek improved profitability through potential layoffs, as they face adverse effects from increased taxes on mining minerals, which could further strain their operations.
The restructuring negotiations are set to commence immediately on Friday, reflecting the urgent need for Terrafame to adapt to its current financial landscape. The company's actions signal significant shifts in the mining industry in Finland and underscore the broader economic challenges faced by firms reliant on mining activities, particularly in light of new fiscal policies and market pressures.
