Škoda Transtech Job Cuts: 200 Jobs at Risk Following Helsinki Tram Tender Exclusion - News and Statistics

Jun 2, 2026

Rolling stock manufacturer Škoda Transtech has initiated employee talks about organisational changes that could result in job cuts, according to a report published on June 2, 2026, by Railway Gazette. This follows the Market Court’s dismissal of the company’s challenge against its exclusion from a Helsinki tram supply contract.

On May 25, Škoda Transtech stated that the contract, which would have involved up to 183 trams, would have guaranteed work for a substantial portion of its staff. The company now says it must account for what it called a ‘controversial decision’ to exclude it from the tender process.

The possible measures include layoffs, restructuring, changes to work hours, altered job roles, and part-time arrangements. The maximum permanent reduction in employees is estimated at 200 workers, representing one-third of the workforce at the Otanmäki plant.

Škoda Transtech indicated that any changes would not impact current or future commitments. It noted that Finland and the wider Nordic region remain strategic markets for its parent, Škoda Group, which intends to keep using the Otanmäki plant for future opportunities, including any further developments related to the Helsinki tram tender.

Procurement process

In April 2025, following market dialogue with potential suppliers, Helsinki area transport operator Pääkaupunkiseudun Kaupunkiliikenne invited CAF, Stadler, and Škoda Transtech to bid for the tram contract. Final bids from Stadler and Škoda Transtech were submitted in July 2025.

In October 2025, Stadler was chosen to supply and maintain 63 customised Tango Nordic trams, with options for up to 120 additional vehicles. The operator said Stadler’s bid was the only one meeting all 1,600 requirements.

Škoda Transtech lodged a complaint with the Market Court, arguing that the final tender call had significantly altered the comparison criteria and requirements, that the contracting authority had wrongly excluded it based on discretionary exclusion grounds, and that it was not given the chance to present corrective measures to prove its reliability.

After the Market Court rejected the appeal, on May 19 Škoda Transtech said it disagreed with parts of the decision, which it described as the result of an incorrect assessment of the technical portion of its bid. The company maintained that its bid met all requirements, that clarifications provided during the process were legitimate and did not change the bid’s substance, and that its exclusion stemmed from an overly formalistic reading of technical details. It welcomed the dismissal of what it called ‘unfounded allegations’ that it had tried to improperly influence the tender.

Škoda Transtech has now brought the case to the Supreme Administrative Court and has also asked for the contract signing to be suspended until the case is resolved.

‘Dangerous precedent’

Škoda Group CEO Petr Novotný said the Market Court assessed the technical part of Škoda Transtech’s bid in a purely formalistic manner, turning the company’s proactive and co-operative approach into an alleged material change of the bid, leading to a finding of non-compliance with technical requirements. He said the decision deeply concerns the company and is considered a dangerous precedent. He argued that if technically sound and functional solutions can be excluded based on an ambiguous and formalistic interpretation of details, and if any explanation can be considered a material change, the fairness of public procurement in Europe is at risk, ultimately harming the travelling public. He said the decision disregards the quality of the offered technical solution and its impact on travellers, and that the company will vigorously defend itself.

Stadler declined to comment.

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