Tieto Corporation STOCK EXCHANGE RELEASE 9 June 2014, 9.00 am EET
To improve its competitiveness and drive the renewal of services and competences, Tieto plans to reduce a total of 230 positions. The reductions will affect the Consulting and System Integration (CSI) service line and Product Development Services. Of the positions, up to 180 are in Finland. The negotiations are part of the anticipated restructuring measures communicated in the first-quarter interim report.
The IT services industry change drives competence renewal in Consulting and System Integration
To increase its competitiveness in application services through improved efficiency, Tieto’s Consulting and System Integration service line plans to reduce a total of 160 positions, of which 110 are in Finland and 50 are in Sweden and other countries.
“The demand in the market is shifting from traditional services to modern technology, industrialized services and cloud, requiring a competence shift to address new growth,” says Satu Kiiskinen, Executive Vice President, Consulting and System Integration. “The results for CSI developed positively the first quarter, with several growing areas. However, to ensure our competitiveness in the market, we still need to improve the efficiency in our application services business through continuing Global Delivery and modernization,” Kiiskinen concludes.
High volatility in the demand for Product Development Services continues
Product Development Services has identified the need to increase the restructuring communicated earlier. According to initial estimates, the personnel impact is 70 positions in Finland.
“The market situation continues to be challenging in Finland, mainly driven by increased insourcing of product development. These changes in the project base require additional restructuring of the organization and hence the need for additional headcount reductions,” says Antti Vasara, Executive Vice President, Product Development Services.
As communicated earlier, Tieto anticipates that its restructuring costs will amount to around half of the 2013 level. In 2014 overall, Tieto’s restructuring needs will be based on potential overcapacity in selected businesses, automation and the need to align the company’s competence base with the market demand.
For further information, please contact:
Satu Kiiskinen, Executive Vice President, Tieto Consulting and System Integration,
tel. +358 50 5063757, satu.kiiskinen (at) tieto.com
Antti Vasara, Executive Vice President, Tieto Product Development Services,
tel. +358 2072 010, antti.vasara (at) tieto.com
Lasse Heinonen, CFO, tel. +358 2072 66329, +358 50 393 4950, lasse.heinonen (at) tieto.com
NASDAQ OMX Helsinki
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Tieto is the largest Nordic IT services company providing full life-cycle services for both the private and public sectors and product development services in the field of communications and embedded technologies. The company has global presence through its product development business and global delivery centres. Tieto is committed to developing enterprises and society through IT by realizing new opportunities in customers’ business transformation. At Tieto, we believe in professional development and results.
Founded 1968, headquartered in Helsinki, Finland and with approximately 14 000 experts, the company operates in over 20 countries with net sales of approximately EUR 1.6 billion. Tieto’s shares are listed on NASDAQ OMX in Helsinki and Stockholm. Please visit www.tieto.com for more information.