Finnish smartwatch manufacturer Suunto may relocate nearly all its operations to China after 90 years. Following its acquisition in 2022, the company reportedly plans to lay off more than 70% of its remaining workforce in Finland.
Outdoor equipment manufacturer Suunto was founded in Finland in 1936 and has consistently conducted product R&D and production there. However, since being acquired by Chinese wearable device maker Heytech in 2022, this situation has gradually changed, with an increasing number of R&D and production processes moving to China to reduce costs.
According to Finland's Helsingin Sanomat, Suunto has notified approximately 160 employees in Finland of massive layoffs. The cuts will affect about 118 employees, representing 74% of total positions, primarily impacting staff in R&D and production, while management remains unaffected. Reports indicate that Suunto Finland is still negotiating with Heytech regarding the specific roles to be eliminated.
This announcement comes as no surprise, as Suunto's Chinese parent company had previously announced plans to move all production to China by 2024. This move is likely aimed at reducing costs to better compete with Chinese brands like Amazfit in the future. However, it may also make it difficult for Suunto to justify the high prices of its products, such as the Suunto Ocean. Retaining some positions in Finland could be beneficial, particularly as it allows the company to continue promoting its Finnish heritage.