TIETO on Wednesday announced it will reduce around 700 positions worldwide as part of an effort to create annual gross savings of 30–35 million euros.
The Finland-based information technology company said the measures are part of a renewal process launched to improve its future competitiveness, focus on accelerating design and data-led innovation, and overhaul its ways of working and leadership model.
The company provided no estimate of how many of the reductions would affect its almost 3,400 employees in Finland.
“The strategy announced today builds on our renewal, and we see exciting opportunities in the world fuelled by data and driven by technology. By strengthening our context-rich customer engagement and moving to networked ways of working, we empower our people together with our customers to create great everyday experiences,” commented Kimmo Alkio, the CEO of Tieto.
“I expect we will continue to see positive developments in both customer and employee experience in this inspiring data-rich world.”
Tieto also announced it has revised up its growth and profitability expectations after embarking on its new strategy, revealing that it will seek a compound annual growth rate of five per cent and an adjusted operating margin of 13 per cent in 2019–2022.
The strategy, it added, also seeks to boost its competitiveness by increasing investments in high-growth digital services and software, customer engagement activity and agile teams with higher autonomy.
The company will also increase investments in design and data-centric capabilities and expects to add 2,500–3,000 competences for these roles during the strategy period.
Aleksi Teivainen – HT