Spinnova explained the job losses are geared towards supporting the effective execution of the company’s updated strategy and to reduce fixed costs in a bid to reach profitability targets.

At the beginning of the negotiations, Spinnova expected the maximum number of permanent reductions to be 16 and a maximum number of roles changes to be five.

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However, it said that changes in roles and tasks, retirements, and replacing external work with in-house resources, it can now expect to reach its savings targets by permanently reducing eight positions.

On 14 March, Spinnova announced the start of its negotiations in accordance with the Act on Cooperation to turn the company around after FY sales slumped.

Spinnova explained at the time its restructure was to create positive cash flow for the business without the need for additional funding.

CEO Tuomas Oijala commented at the time: “The current tough economic climate is not the easiest for scaling a growth company. During my first months, I have got to know our operations and people with the aim to bring clarity, focus and prioritisation. We are making progress step by step on our journey to increase the production volumes of Spinnova fibre and to bring the fibre to the market in product applications through our committed supply chain and brand partners. It is clear to me that macroeconomic trends, constraints in the global fibre supply chain, and the need for the textile industry to meet its sustainability targets present us with a significant and inspiring opportunity to capture.”

Last month (March) Spinnova and strategic partner Suzano signed a Letter of Intent (LOI) for Spinnova and its partners to supply fibre production technology to Suzano and open a new production facility.