Helsinki, 2011-06-28 08:00 CEST (GLOBE NEWSWIRE) -- DIGIA PLC STOCK EXCHANGE RELEASE 28 June 2011, 09:00 a.m.
DIGIA’S COOPERATION NEGOTIATIONS COMPLETED
Digia Plc has completed the cooperation negotiations it began on 13 May 2011. As a result of the negotiations, Digia has decided to close down its site in Lappeenranta and intends to lay-off a maximum of 181 employees, belonging mainly to company’s Mobile Solutions segment, from the sites in Helsinki, Jyväskylä, Lappeenranta, Oulu and Tampere.
Personnel reductions will take effect by end of year 2011. It was agreed in the negotiations that Digia will, together with local TE-office or ELY-centre, arrange group education targeted to support laid-off employees in their search for new employment. Education is conditional upon sufficient number of people participating the education to form a group.
The company estimates that the support measures and staff reductions will entail a one-off expense of approximately EUR 2,2 million, which will be expensed in the company’s result for the second quarter of 2011. As already reported earlier, the second quarter result will also be expensed by the one-off expenses in the amount of 1,1 million euros as a result close down of the site in Pori. The one-off expenses will thus amount to a total of 3,3 million euros in the second quarter, as a result of which the company’s operating profit will be negative in the second quarter.
Digia Plc
Board of Directors
Further information:
Juha Varelius, President and CEO
Tel. +358 400 855849, e-mail: juha.varelius@digia.com
Distribution:
NASDAQ OMX Helsinki
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