Business News

Tieto starts Group-wide personnel adjustments

Wednesday 08. April 2009 - As part of its new streamlining actions that were announced on 23 March, Tieto will start Group-wide personnel adjustments in selected operating countries mainly in Europe.

The negotiations are expected to lead to a reduction of about 620 employees in total distributed as follows: approximately 300 in Finland, 150 in Sweden, and 170 in Tieto’s 10 International countries. In addition to personnel redundancies, the company will discuss about the possibility to use temporary lay offs in Finland. Further streamlining actions include consolidation of offices, reducing the number of subcontractors and cutting down business expenses.

The negotiations processes will be started with labour union representatives in accordance with the local legislation and labour practices in each country. As consolidation of offices and reducing the number subcontractors will have an impact on the need for personnel adjustments, they will be covered in the negotiations as well. The duration of the processes vary country by country. However, all negotiations will be completed during the second quarter.

In February this year, Tieto started personnel adjustments to decrease the number of personnel by some 350 people as follows: 170 in Sweden and 180 in Tieto International. Major part of these processes has already been completed.

President and CEO Hannu Syrjälä says: “The decline in customer demand for IT services has been stronger and faster than we anticipated at the start of the year. Tieto has started a number of streamlining actions to address this situation with the aim of reaching new cost savings in the amount of EUR 100 million. Personnel adjustments are unfortunately also needed to adjust our cost-base. We will of course explore different alternatives to tackle this issue in the most sustainable way.”

Tieto currently employs 16 700 persons of which approximately 5 700 work in Finland, 3 200 in Sweden and 7 800 in Tieto International.