As the Coronavirus pandemic creates uncertainties across businesses and markets, TietoEVRY also needs to prepare for cost structure adjustments through a broad set of potential activities. TietoEVRY sees a need to be able to flexibly adjust our operations in areas where the demand may fall below our production capacity. The company communicated on March 27 about withdrawal of its financial guidance for 2020 due to the uncertain market outlook caused by COVID-19.
The company has identified a multitude of savings actions to mitigate the financial impacts and long-term consequences of the Coronavirus pandemic and the anticipated economic slow-down. The savings actions applied company-wide are subject to the economic development, and include activities such as:
- Stopping or reconsidering all external recruitments
- Terminating non-billable sub-contracting and reviewing the use of all sub-contractors
- Replacing sub-contractors with own employees where possible
- Purchases e.g. phones, laptops, office equipment will be postponed
- Participation in external events, courses, conferences etc. have been cancelled
- No travelling is allowed at the moment
- Salary increases will be postponed until further notice unless agreed in local collective agreements
- Employees are encouraged to take their annual holidays from previous periods as well as use their saved flex-time hours for days off
- The exchange of holiday bonuses for time off especially in non-billable roles in countries where applicable
The company has also initiated consultation concerning temporary layoffs to be able to flexibly adjust the operations in areas where the demand may fall below the production capacity. The consultation has now been started in Finland and similar processes will be initiated in other countries according to country practices. The country-specific consultation processes will take from one week to one month and the impacts of them will be communicated as we proceed.
All of these actions are planned to safeguard the stability of the company during this time of uncertainty and extraordinary circumstances.
For more information:
TietoEVRY Newsdesk, firstname.lastname@example.org