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© alinoubigh dreamstime.com Electronics Production | June 09, 2014

Tieto cuts down on staff numbers

Tieto plans to reduce a total of 230 positions. The reductions will affect the Consulting and System Integration (CSI) service line and Product Development Services.

Of the positions, up to 180 are in Finland. The negotiations are part of the anticipated restructuring measures communicated in the first-quarter interim report. 'To increase its competitiveness in application services through improved efficiency, Tieto’s Consulting and System Integration service line plans to reduce a total of 160 positions, of which 110 are in Finland and 50 are in Sweden and other countries' a press release states. “The demand in the market is shifting from traditional services to modern technology, industrialized services and cloud, requiring a competence shift to address new growth,” says Satu Kiiskinen, Executive Vice President, Consulting and System Integration. “The results for CSI developed positively the first quarter, with several growing areas. However, to ensure our competitiveness in the market, we still need to improve the efficiency in our application services business through continuing Global Delivery and modernization,” Kiiskinen concludes. Product Development Services has identified the need to increase the restructuring communicated earlier. According to initial estimates, the personnel impact is 70 positions in Finland. “The market situation continues to be challenging in Finland, mainly driven by increased insourcing of product development. These changes in the project base require additional restructuring of the organization and hence the need for additional headcount reductions,” says Antti Vasara, Executive Vice President, Product Development Services.
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