TietoEnator says 800 jobs could go

Source: TietoEnator

TietoEnator has initiated personnel negotiations about the need to reduce the number of personnel and overhead costs to improve the company's profitability and to secure a sound basis for future growth.

The estimated need for personnel adjustments, including personnel reductions and internal transfers within the company, concern approximately 800 positions mainly in Finland and Sweden. The negotiations are part of the company's two-year performance improvement programme for 2008 and 2009, which aims at achieving annual savings of 100 million euros by the end of 2009.

The negotiations will cover adjustments during 2008 and concern all employee categories within business areas and group functions, but the focus differs country by country. Approximately 400 of the affected personnel are in Finland, 250 in Sweden, and around 150 in other TietoEnator's operating countries. The negotiations processes have now been started in different countries as required by local legislation. TietoEnator has started to investigate opportunities for internal transfers concerning the affected personnel.

"These actions to streamline our organization and to reduce corporate-level administrative costs are part of the performance improvement programme that we launched in the beginning of this year. Combined with investments in growth, people and quality we will be able to secure future success for the company and to reach our long-term profitability target," says Åke Plyhm, interim President and CEO.

TietoEnator currently employs around 17 000 persons of which approximately 7 000 work in Finland, 3 600 in Sweden and the rest in other countries.

TietoEnator will publish its fourth quarter result and financial statements for 2007 on 6 February 2008 at 8.00 am EET/ 7.00 am CET.

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