IT provider Tieto to cut more jobs

By IVCPOST Staff Reporter

Oct 14, 2013 07:57 AM EDT

Tieto, a Finnish IT services provider, had planned to reduce 5% of its workforce. This was according to a report from Reuters. The Finnish company planned to cut up to 770 jobs as it aimed to contend with the drop in technology spending in the telecoms sector.

Tieto competes with bigger technology services companies including IBM and Accenture. The job reduction was announced earlier in line with the company's cost cutting measures. This would save more than EUR50 million for the company a year.

The latest cuts followed 1600 job losses in a company restructuring plan last March 2012. The job reduction announced last 2012 was completed this year, said a report from Reuters.

In a statement, Tieto announced that the latest cuts would be completed by the end of the first quarter next year. This would result to around EUR45 million in restructuring costs this year. The company made a previous forecast that a savings of about half of the EUR57 million it booked in 2012 would be reached.

At the end of the second quarter, Tieto ended with 15447 employees working in the company.

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