Neste to simplify structure to boost long-term competitiveness
Neste, a global leader in sustainable solutions based in Helsinki, Finland, announced plans to streamline its organisational structure to enhance cost-efficiency and fortify its long-term market position. The move is in line with the company’s growth strategy, aiming to bolster accountability and expedite decision-making processes.
The company intends to consolidate its Renewable Aviation, Renewable Road Transportation, and Renewable Polymers and Chemicals business units into a singular Renewable Products business unit. This merger will encompass all renewable ventures. Additionally, Neste is set to realign its functions to amplify business-centric operations.
Matti Lehmus, president and CEO of Neste, emphasised the company’s commitment to its renewables growth strategy. “While we focus on bolstering our efficiency, the proposed organisational modifications will solidify our long-term market standing. These changes are pivotal in delivering value to our clientele and stakeholders amidst a dynamic business landscape,” Lehmus said.
The anticipated organisational adjustments could result in a reduction of around 400 roles worldwide, primarily in renewables and development sectors. These changes are projected to yield annual savings of roughly EUR50 million (USD53.09 million). Neste also plans to refine its development portfolio for additional savings, with the majority expected to materialise in 2024.
In June 2023, Neste shared its ambition to achieve more than EUR350 million (USD375.56 million) in value creation through its Neste Excellence program by 2026, using 2022 as the benchmark year. The forthcoming organisational changes and a refined development portfolio are tangible steps in this direction.
Neste is dedicated to engaging closely with its workforce and employee representatives throughout this transition. “Although these decisions impact our team, they are essential. We pledge to extend our support to all affected employees,” Lehmus said.
The organisational shifts will also influence Neste’s Executive Committee’s composition. Starting November 1, 2023, the committee will include Matti Lehmus, Katja Wodjereck, Carl Nyberg, Markku Korvenranta, Martti Ala-Härkönen, Bart Leenders, Hannele Jakosuo-Jansson, and Christian Ståhlberg.