To counter the decline in customer demand for IT services
Nordic IT services vendor Tieto has announced plans to cut approximately 620 jobs worldwide to counter the decline in customer demand for IT services.
The company said it plans to cut approximately 300 positions in Finland, 150 in Sweden, and 170 in 10 other countries in which it operates. It also plans to implement cost-reduction initiatives including the consolidation of offices, the reduction of the number of subcontractors, and reducing business expenses.
The job cuts form part of a restructuring and cost-reduction plan announced in January 2008 to generate annual cost savings of more than E100m ($127.17m) by the end of 2009.
Hannu Syrjala, president and chief executive at Tieto, said: 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, including personnel adjustments, to address this situation with the aim of reaching new cost savings.
In February the company reported a net profit of E1.6m ($2m) for the fourth quarter 2008, compared to a loss of E71.9m ($92.8m) in the year-ago quarter, on revenue up marginally at E492m ($635.5m).