KONE to Cut Up To 1,000 Jobs Globally

As part of an organizational restructuring announced on January 26 with its latest earnings, KONE said it will cut up to 1,000 jobs globally — 150 in its native Finland, Reuters is among outlets to report. From the beginning of 2024, the move is expected to save up to EUR100 million (US$108.5 million) annually. The jobs represent approximately 1.6% of KONE’s workforce of 63,277 (as of the end of 2022). The company’s October-December 2022 earnings beat analysts’ expectations by rising 1.6% to EUR365 million (US$396 million) versus the previous quarter, and CEO Henrik Ehrnrooth said he expects demand in its main market, China, to pick up by mid-year, thanks in part to stimulus measures. KONE also expects accelerating demand in the Middle East and elsewhere in the Asia-Pacific. High savings rates in China and lower inflation throughout Asia (compared to Europe and North America) are also expected to aid market recovery.