TietoEnator starts personnel negotiations on production consolidation in Processing & Network business area

TietoEnator Corporation Stock Exchange Release 4 May 2005, 10.15 am EET

As part of the present centralisation activities for increased efficiency in TietoEnator's processing and network business, TietoEnator now starts statutory negotiations for production and economic reasons with at most 160 people in Finland, Sweden and Central Europe who are affected by the reductions. As previously informed these activities are expected to impact approximately 200-250 jobs in total during this year, including the on-site support staff of 71 transferred to Manpower in 1st of May.

The reductions are estimated to affect at most 110 employees in Finland, 45 in Sweden and 5 in Central Europe. Most of these people work in production but a few work in support functions. In Finland the company will start statutory negotiations on the 9th of May. In Sweden the negotiations start during May. The company will consider all means of support such as retraining, internal mobility and pension arrangements, for its personnel.

The Processing & Network business area is adopting a new business structure that will enable more cost-efficient resource management and thus stronger competitiveness in the difficult market conditions. The cost savings of the centralization are expected to exceed EUR 10 million annually from 2006. The total expenses arising from all centralization measures, including layoffs, are expected to total around EUR 10 million during 2005. The more exact amount and timing of the layoff costs can be estimated as the employee negotiation processes are completed, probably by the end of June 2005.

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