Finnish News Agency STT has started restructuring talks covering 95 employees as financial losses threaten the future of its news and photo operations. The Helsinki-based agency said its current business model could end in March, putting at risk a news service that traces its history to 1887 and supplies media organisations across Finland.
The talks cover almost all STT employees apart from staff at STT Viestintäpalvelut, its press release distribution business. Up to 95 positions could end under the restructuring plan.
Of those affected, 68 work in text or photo journalism, while the remaining employees work in other services, development, business operations and information technology.
STT said its news and photo agency operations have recorded losses for years and that costs continue to exceed revenue.
“Maintaining STT’s news and picture agency business with its current customer base is not realistic,” chief executive Kimmo Laaksonen said in the agency’s statement.
STT last restructured its organisation around the turn of 2025 and 2026 after Sanoma’s news outlets stopped using its services. The measures failed to deliver the required savings, according to the agency.
STT also said attempts to establish a broader ownership base had failed. Sanoma Media Finland became the agency’s majority owner in 2018 and has spent the past year seeking other news organisations willing to share ownership and responsibility for developing the business. STT said Sanoma had offered to relinquish its stake for a nominal price.
Turning the news agency business around would require sustained investment and owners prepared to support that work, STT chairman Petteri Putkiranta said. No group willing to assume that role had emerged, he added.
The restructuring does not cover STT Viestintäpalvelut, which employs fewer than 10 people and distributes corporate press releases. That operation remains profitable and has helped cover losses from the news and photo agency business.
The Finnish state had been prepared to provide a one-off subsidy of slightly more than €1 million towards STT’s development. STT said the proposed funding would not have covered the cost of its planned transformation even if granted in full.
The Ministry of Transport and Communications said it had suspended preparations for STT’s state subsidy until the company’s owners decide whether operations will continue.
“STT’s financial and operational challenges have been known for a long time, so the decision did not come as a surprise,” Transport and Communications Minister Lulu Ranne said.
A closure would require dozens of STT customers to find other sources for basic news coverage and photography. The agency also distributes Finnish news internationally through relationships with foreign news agencies.
The Union of Journalists in Finland responded to the announcement by calling for measures to preserve STT. Union chair Marjaana Varmavuori said the possible closure would weaken Finland’s news infrastructure at a time when information influence operations form part of the security environment.
“The shutdown of STT is absolutely shocking news in the current security situation,” Varmavuori said. She said Finland should strengthen rather than weaken structures supporting reliable news distribution.
The union also warned that regional and local media would face higher costs or reduced services if they had to replace STT’s news, photography and overnight coverage. Varmavuori said the loss of STT could also put further financial pressure on other news organisations.
STT vice-chairman Pekka Mervola said the agency’s problems reflected conditions facing Finland’s media sector. He pointed to the state’s reduced use of STT services and the absence of media subsidies in Finland.
STT said its board and principal shareholders agree that restructuring is required. If the news and photo operation closes in March as envisaged, STT Viestintäpalvelut would remain outside the process.
HT
