Wartsila, the Finnish marine engine, equipment and technical services provider, says it will cut 1,000 jobs in the group to drive up efficiency.

The group reported a 2013 net profit of €393 million on revenues of €4.62 billion compared to a slightly lower profit of €344 million and a fraction higher revenues of €4.72 billion in the previous year.

“Wartsila has started a process to realign its organisation to secure future profitability and competitiveness. The Group-wide efficiency programme is expected to lead to a reduction of approximately 1,000 employees globally, of which about 200 are planned to be in Finland. The reductions will impact all businesses and support functions,” the companysaid in a statement.

 With these actions Wartsila seeks annual savings of €60 million. The effect of these savings is expected to materialise fully by the end of 2014. The non-recurring costs related to the restructuring measures will be €50 million. Of these costs €11 million was recognised in 2013, as certain measures were initiated at the end of the year.

“Despite some signs of improvement in market conditions, the business environment remains challenging. Vessel contracting activity is expected to remain at improved levels, but overcapacity and price pressure is still a concern. Uncertainties in the global economy have caused delays in power generation market activity.”

“The service market development remains stable. The volatility in the market demand has increased and Wärtsilä is adapting its organisation to this reality. The synergies that were identified in the merger of the Ship Power and PowerTech organisations are also being implemented,” the company said.