Spinnova, a Finnish sustainable textile fiber producer, will potentially lay off approximately 21% of its 76-person workforce. This action is part of a business restructure focusing on fiber technology sales. The company aims to create positive cash flow by targeting annual savings of about EUR 14 million (~USD 15.3 million) . The changes are expected to take effect on 1 May 2024.

Spinnova anticipates that up to 16 employees could be made redundant, while up to five could change their roles. These layoffs primarily impact the company's Finland base and span across various departments, largely including the management team. Despite these layoffs, several key positions within the company's management team will remain unchanged, including the CEO, CFO, COO, CRO, and deputy CEO.

Analyst QuickTake: The move follows a 56% reduction in annual sales in 2023 compared to 2022 and a 53% increase in the company’s operating loss across the same period. The company also only secured ~USD 9.81 million in funding across 2023 compared to ~USD 18.5 million in 2022. Nevertheless, the company has been actively taking steps to develop its technology, partnering with Suzano for a wood-based fiber production facility earlier in March 2024 and Rejlers to prepare a process design package for fiber production in February 2024.