Neste completes organizational change to improve long-term competitiveness

Photo: Neste Corp.

Neste Corp. announced March 13 that it has completed the organizational change it initiated last year.

Neste has merged its three renewable business units into one renewable products business unit as well as restructured its functions to better support business-driven ways of working, the company stated.

With the simplified organizational structure and operational model, Neste said it is securing the execution of its growth strategy with improved cost efficiency and strengthening its long-term competitiveness.

The planned organizational changes were expected to lead to a reduction of approximately 400 job roles globally.

In Finland, following thorough change consultations, the number of job roles to be reduced has been confirmed at about 320.

In addition, it is estimated that 70 job roles will be reduced globally.

Neste said it is offering its employees support in adapting to the situation in different ways.

The restructuring is expected to result in total annual cost savings of approximately 50 million euros (USD$54.7 million).

Neste communicated on its Capital Markets Day in June 2023 that it is targeting over 350 million euros (USD$382.8 million) in value creation with its Neste Excellence program by the end of 2026, compared to the year 2022 acting as the new base year.

The organizational changes and a more streamlined development portfolio are concrete steps in the program.