Finland Times

The news comes after ongoing employer-employee negotiations started in October. Some 2,500 employees' positions were under threat during the layoff talks.

The job cuts will take place over the period from 2014 to 2016.

The company-wide layoff will affect Neste Oil's renewable fuels unit, shipping firm, and the parent company itself.

Neste Oil said approximately half of the people whose positions were on the chopping block opted to take voluntary retirement; the company has said it would offer various forms of support to the remainder of those losing their jobs.

Earlier in October, Neste Oil announced its plan to invest 250 million euros (about 312 million U.S. dollars) in growth and optimizing production at the Porvoo and Naantali refineries in Finland.

As a result of the investment, operations at Porvoo and Naantali will be merged to increase operational cost-efficiency. In addition, the company is also considering closing down some production units.

Neste Oil's investment and reorganization plan was at the expense of reducing the number of jobs.

Founded in 1948 with its headquarters in Espoo, Finland, Neste Oil produces, refines and markets oil products and provides engineering services, as well as licensing production technologies.

The company currently has operations in 14 countries and employs around 5,000 people around the world, of whom 3,500 are in Finland.