Digia Oyj - Company Announcement

DOWNSIZING OF DIGIA'S MOBILE SOLUTIONS SEGMENT TO CONTINUE

Helsinki, 2011-05-13 08:00 CEST (GLOBE NEWSWIRE) -- Digia Plc STOCK EXCHANGE
RELEASE 13 May 2011, 9.00 a.m. 



DOWNSIZING OF DIGIA'S MOBILE SOLUTIONS SEGMENT TO CONTINUE



Digia continues adapting its Mobile Solutions business to match the declining
turnover and profitability of the segment and initiates today cooperation
negotiations aimed at reducing staff. 

As previously announced by Digia Plc this is due to the change of strategy by
company's major customer, Nokia Corporation, which has resulted to lower
service demand and further to overcapacity in Digia's personnel resources. 

The negotiations concern employees working in the Mobile Solutions segment and
based in Helsinki, Jyväskylä, Oulu and Tampere, as well as all employees at the
company's Lappeenranta site. In addition, the negotiations concern employees in
certain administrative and support functions. In total, approximately 530 Digia
employees are included. Digia estimates that the downsizing need affects a
maximum of 190 employees, to whom the company is unable to assign work. In the
end of March, the Group employed a total of 1,586 persons. 

Staff cuts do not concern the Enterprise Solutions segment, which is thus
excluded from the negotiations and which generated almost 60 % of the Group's
turnover in 2010 and in Q1 2011. The company has estimated that the net sales
of Enterprise Solutions are expected to grow organically during the rest of the
year, at least matching the moderate rate predicted for the IT market. 

Demand for Enterprise Solutions' strong focus areas - development of ERP
solutions as well as e-commerce and multi-channel customer experience
management - is considered healthy by Digia. When necessary, the company aims
to reinforce the operations of the Enterprise Solutions segment through
targeted recruitment. 



Digia Plc



Board of Directors



Further information
Juha Varelius, President and CEO
Tel. +358 400 855849, E-mail: juha.varelius@digia.com

Distribution
NASDAQ OMX Helsinki
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