Tieto laying off 180 employees

In addition to immediate cost savings measures, Tieto aims to reduce a total of 180 positions globally from its PDS business. Of the redundancies, 70 are anticipated to materialize in Finland, 30 in Sweden, and 80 in other countries. “Market situation for product development services continues to be very challenging and volatility is high. These actions we are announcing today are needed for PDS to adjust capacity to the current demand. The immediate costs saving actions are necessary to manage our business in a responsible manner and maintain our ability to build a long-term sustainable product development services business,” says Antti Vasara, EVP, Product Development Services. In each country, Tieto will follow the local legislation and practices in the process. In Finland and Sweden, the company will start the process by making a proposal to employee representatives on 6 May 2014. On 25 April, Tieto announced its first-quarter results with continued profitability improvement and organic growth of 3% in IT services. In PDS, volatility continued and sales were declining in the first quarter. In 2014 overall, Tieto’s restructuring needs will be based on potential overcapacity in selected businesses, automation and the need to realign the company’s competence base.