A thousand workers will be made redundant out of the company's 18,663 employees, with 200 of those redundancies coming from Wartsila's Finnish home.
The cuts are expected to save the engine maker €60 million ($A93.6 million) per year in a market the company sees as challenging, despite improved conditions.
"In an environment of slow growth and intense competition, we must take steps to adjust our cost structure accordingly," Wartsila CEO Bjorn Rosengren said.
"Only by increasing the efficiency and flexibility of our organisation globally can we secure profitability and maintain competitiveness going forward.
"Unfortunately redundancies cannot be avoided."
Wartsila was the target of a failed acquisition bid by Rolls Royce at the beginning of the year, an event that saw the company's shares rise by about 18%.
"Wartsila is a strong stand-alone company," Rosengren told Reuters.
"We don't need to go together with any other company to be successful."
This sentiment aside, Rosengren told Reuters that the company was hoping to complete some acquisition deals of its own before the year was out.
Wartsila expects its belt-tightening activities will see a growth in sales but little or no increase in profits for 2014.