Business News

Tieto concludes personnel negotiations in Finland

Friday 29. May 2009 - In April, Tieto announced Group-wide personnel adjustments. In Finland, the related personnel negotiations have now been concluded, and as a result, Tieto will make a total of 220 persons redundant and temporarily lay off no more than 1 500 employees during 2009 either for a fixed period or until further notice.

Most of these 1 500 employees will be laid off for a fixed period varying from two weeks to ninety days. The actions will be started on 1 June 2009.

Of the 220 job cuts, about 100 will be made during June and July and the rest by the end of the year. These persons work mainly in the capital area, but there will be redundancies in other locations in Finland too.

Tieto has also initiated other streamlining actions such as consolidating offices, reducing the number of subcontractors and cutting down business expenses. In Finland, Tieto has decided to consolidate its offices in selected locations, e.g. Helsinki, Tampere and Oulu. Personnel working in the offices that will be closed will move to other Tieto premises.

Ari Karppinen, Country Head for Finland comments: “These personnel adjustments are part of Tieto’s actions to reduce costs in general and adjust Tieto’s business operations to the current demand. In Finland, we are also going through a more profound structural change as the production of IT services is increasingly moving to offshore countries with lower cost levels. Uncertainty prevails over the future development of the IT market. However, by favouring layoffs over redundancies we are able to maintain our flexibility.”

Tieto currently employs approximately 16 700 people of whom 5 700 work in Finland.