Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
TietoEnator, an IT services provider, has concluded its personnel negotiations in Finland resulting in 190 job losses. TietoEnator announced on 24 January 2008 that it was to cut 800 jobs by the end of 2009. Most of the cutbacks are to take place in the Nordic Countries, where labour costs are high: 400 jobs in Finland, 250 in Sweden, and approximately 150 in other European countries. With the lower reduction figures from Finland the total figure of job cuts in Nordic Countries sum up to 590.
Many operations of TietoEnator will be transferred to Eastern Europe and Asia for reasons of profitability. Currently about one-fifth of TietoEnator employees are in these countries.
The aim of the restructuring is to reduce costs and improve efficiency. The company intends to save EUR 100 million by the end of next year.
TietoEnator has started personnel negotiations in different countries as required by local legislation. Negotiations aconcern all employee categories within business areas and group functions, but the focus differs country by country. The company is investigating opportunities for internal transfers concerning the affected personnel.
Last year the company tried to boost its business operation by increasing its sales. Previously TietoEnator grew mainly through corporate acquisitions, which occurred fast and frequently.The problem is that costs of consultant companies such as TietoEnator tend to increase during good economic times because of the rise in consultants' pay. The company also became aware of the need for cheap labour far too late.
TietoEnator currently employs around 17,000 employees of which approximately 7,000 work in Finland, 3,600 in Sweden and the rest in other countries.
Eurofound (2008), TietoEnator, Internal restructuring in European Union, factsheet number 66240, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/66240.
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