Impact of Modulight's change negotiations remains limited

Translation: Original published in Finnish on 9/11/2025 at 7:30 am EEST.

Modulight announced on Wednesday that the change negotiations it initiated at the end of August have concluded. The outcome of the negotiations was clearly milder than expected, and redundancies will be avoided entirely. Instead, cost savings are sought through part-time or full-time temporary layoffs affecting 20 people. The company originally estimated the need for reductions to be a maximum of 25 people. Modulight did not comment on the duration of the layoffs, making it difficult to assess the precise impact of the cost savings. However, the impact will be clearly smaller than our preliminary estimate, and we will make our minor forecast changes in connection with the next company update.

Negotiations concluded with milder-than-expected outcomes

The negotiations, initiated for financial and production-related reasons, aimed to enhance operational efficiency and improve profitability. According to preliminary estimates, temporary layoffs and terminations would have affected a maximum of 25 people. As we noted in our previous comment, the change negotiations did not come as a complete surprise due to the company's weak profitability and cash flow. However, the outcome of the negotiations was better than feared, as the company resorted to temporary layoffs instead of redundancies. This is naturally a better solution for the personnel and also possibly indicates that the company views the challenges in the market situation as more temporary. Based on the CEO's comments, the company has also found other ways to improve productivity.