The Finnish Tax Administration has announced the beginning of restructuring talks with staff representatives.
The negotiations will affect about 900 employees working in taxation and administrative tasks, the agency said in a press release, and may lead to a maximum of 200 people losing their jobs.
The release added that the redundancies are necessary because the administration needs to find at least 60 million euros in savings by the end of 2027.
In addition to the need to save money, an increased use of automated services as well as internal restructuring has led to a reduction in the number of duties carried out by some employees.
Markku Heikura, the administration's Director General, said the situation facing the organisation was "exceptional and very challenging".
The talks with staff representatives are expected to last a total of six weeks. The Tax Administration, which operates under the Ministry of Finance, employs a total of 5,000 people.
Closure of tax offices
The outcome of the negotiations is likely to have a significant impact on the services provided by the administration.
For example, many of the administration's 50 tax offices located around the country may have to close over the coming years, according to Tommi Kämpe, a Director with the Tax Administration.
Kämpe added that there will be 19 regional offices instead.
This means that people will have to travel to the regional office or handle their tax matters remotely.
Article updated at 14:38 on 3.9.2024 to note that local tax offices may fce closure.
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