Glaston communicated on 22 July, that during the first half of the year, the softness of the Architectural market increased with no signs of a significant recovery.

To mitigate the impact of prolonged low activity in the Architectural market and increased volatility in the Mobility glass processing equipment market, Glaston initiates actions to improve its efficiency and reduce costs to ensure profitable performance.

Glaston plans to review its operating model to increase efficiency and to further increase its capabilities to serve customers globally. The aim is to increase focus on delivering more value to customers throughout the lifecycle, to empower the Glaston team to make faster decisions closer to customers, and to streamline processes.

In addition, Glaston will initiate planning concerning measures that are aimed at adapting the company's operating model and ways of working to the lower than expected demand. The plan covers all Business and Global Functions.

The planned measures may include both temporary lay-offs and termination of employment contracts. The planned measures may also result in changes to employment terms and working tasks. 

Glaston estimates that the planned changes could lead to a reduction of up to 40 employment contracts of its over 800 employees globally. The impact in Finland is expected to be a reduction of a maximum of 20 employment contracts out of approximately 220 employed. The planned changes and potential reductions are subject to local negotiation procedures.

Glaston is expecting that the planned measures mentioned above, in combination with other profitability-improving actions, would result in annual cost savings reaching approximately EUR 6 million. Planning for changes related to adapting the operating model and ways of working, and the execution of other profitability-improving and cost-reduction activities start immediately, and savings are expected to be realized throughout 2026.

Even though the market situation has changed since introducing the revised strategy in 2021, Glaston is committed to its medium-term (3−5 years) strategic targets. With the planned actions, Glaston aims to accelerate the strategy execution.

"In a challenging market environment, we have not been able to grow our business in line with our ambitions. As a result, our fixed costs have increased faster than our revenue, and we must respond to this trend decisively. At the same time, I see this as an opportunity to further streamline our operating model to serve our customers more efficiently and to reassess the strategic actions needed to reach our strategic targets," says Miika Äppelqvist, Glaston's President and CEO.

For further information:

Miika Äppelqvist, President & CEO, tel. +358 10 500 500
Pia Posio, VP Communications, Marketing and IR, tel. +358 10 500 5076
 

Glaston in brief

Glaston is the glass processing industry's innovative technology leader supplying equipment, services and solutions to the architectural, automotive, solar and display industries. The company also supports the development of new technologies integrating intelligence to glass.

Glaston is committed to providing its clients with both the best know-how and the latest technologies in glass processing, with the purpose of building a better tomorrow through safer, smarter, and more energy efficient glass solutions. Glaston operates globally with manufacturing, services and sales offices in nine countries and its shares (GLA1V) are listed on NASDAQ Helsinki Ltd.

Distribution: Nasdaq Helsinki Ltd., key media, www.glaston.net