10 April 2019
Tieto announced a new strategy on 6 February 2019, including focus on accelerated innovation and value creation to customers. As part of this, Tieto removes matrix organizational structures and introduces a simplified and increasingly agile operating model. The change ensures faster access to relevant capabilities for the customers, while resulting in less need for internal coordination and administration.
In connection with the newly-launched strategy, Tieto expected its operational simplification to affect around 700 roles globally and result in annualized gross savings of EUR 30-35 million. As the design of the new organization and ways of working has proceeded, Tieto has today started personnel adjustment processes in Finland, Sweden and Czech Republic. The personnel reductions are expected to impact up to 210 employees in Finland, 160 in Sweden and 250 in Czech Republic. The change also impacts some tens of roles in other countries where Tieto operates. While the schedules and processes vary by country, most of the planned reductions are expected to be carried out by the end of 2019. The redundancies are expected to affect all business units except Product Development Services (PDS).
"We have renewed Tieto during the past years and are now entering the next phase of transformation. Unfortunately, this also means personnel reductions - which is never easy. However, these measures are necessary to ensure our long-term competitiveness and we will do our utmost to support our employees through this change", says Kimmo Alkio, President and CEO.
As part of its strategy, Tieto also aims to accelerate design and data-led innovation and will invest in new technologies and competencies in the area. During the strategy period, the company plans to add new expertise in areas such as data science, artificial intelligence, data engineering, design, customer experience, software development and cloud solutions.
Tieto currently employs around 15,000 experts globally, of which approximately 3,700 are located in Finland, 2,900 in Sweden and 2,700 in Czech Republic.
For more information, please contact:
Kia Haring, Head of Global Communications, tel. +358 40 765 3700, kia.haring(at)tieto.com
Tanja Lounevirta, Head of Investor Relations, tel. +358 50 321 7510, tanja.lounevirta(at)tieto.com
Tieto aims to capture the significant opportunities of the data-driven world and turn them into lifelong value for people, business and society. We aim to be customers' first choice for business renewal by combining our software and services capabilities with a strong drive for co-innovation and ecosystems. www.tieto.com