Tieto Corporation STOCK EXCHANGE RELEASE 12 August 2014, 8.30 am EET
Personnel negotiations in the Consulting and System Integration (CSI) service line and Product Development Services in Finland have been concluded. The personnel negotiations were announced on 11 June 2014.
In CSI, the renewal of the company’s competence base is ongoing to align it with the changes in market demand. Based on the negotiations, the service line is anticipated to cut 90 positions, most of which comprise redundancies to be implemented by the end of September. Around 10 of reductions may be implemented as temporary layoffs. Initially, the reduction need was estimated at 110 employees.
In Product Development Services, demand has remained weak and the negotiations were concluded according to the initial proposal. A maximum of 70 employees will be made redundant or laid off. The redundancies will be implemented by the end of October.
The reductions will mainly affect the Helsinki metropolitan area and Tampere. In other locations, only individual reductions will be implemented.
The negotiations are part of the anticipated restructuring measures communicated in the first-quarter interim report. Tieto’s objective is to improve its competitiveness and drive service and competence renewal.
For further information, please contact:
Ari Järvelä, Country Head, Finland, tel. +358 40 8400 915, ari.jarvela (at) tieto.com
Lasse Heinonen, CFO, tel. +358 2072 66329, +358 50 393 4950, lasse.heinonen (at) tieto.com
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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.