Tieto Oyj - Company Announcement

Tieto announces personnel negotiations to ensure competitiveness in the market

Tieto Corporation STOCK EXCHANGE RELEASE 9 June 2014, 9.00 am EET

To improve its competitiveness and drive the renewal of services and
competences, Tieto plans to reduce a total of 230 positions. The reductions
will affect the Consulting and System Integration (CSI) service line and
Product Development Services. Of the positions, up to 180 are in Finland. The
negotiations are part of the anticipated restructuring measures communicated in
the first-quarter interim report. 

The IT services industry change drives competence renewal in Consulting and
System Integration 

To increase its competitiveness in application services through improved
efficiency, Tieto's Consulting and System Integration service line plans to
reduce a total of 160 positions, of which 110 are in Finland and 50 are in
Sweden and other countries. 

“The demand in the market is shifting from traditional services to modern
technology, industrialized services and cloud, requiring a competence shift to
address new growth,” says Satu Kiiskinen, Executive Vice President, Consulting
and System Integration. “The results for CSI developed positively the first
quarter, with several growing areas. However, to ensure our competitiveness in
the market, we still need to improve the efficiency in our application services
business through continuing Global Delivery and modernization,” Kiiskinen
concludes. 

High volatility in the demand for Product Development Services continues

Product Development Services has identified the need to increase the
restructuring communicated earlier. According to initial estimates, the
personnel impact is 70 positions in Finland. 

“The market situation continues to be challenging in Finland, mainly driven by
increased insourcing of product development. These changes in the project base
require additional restructuring of the organization and hence the need for
additional headcount reductions,” says Antti Vasara, Executive Vice President,
Product Development Services. 

As communicated earlier, Tieto anticipates that its restructuring costs will
amount to around half of the 2013 level. In 2014 overall, Tieto's restructuring
needs will be based on potential overcapacity in selected businesses,
automation and the need to align the company's competence base with the market
demand. 



For further information, please contact:
Satu Kiiskinen, Executive Vice President, Tieto Consulting and System
Integration, 
tel. +358 50 5063757, satu.kiiskinen (at) tieto.com
Antti Vasara, Executive Vice President, Tieto Product Development Services,
tel. +358 2072 010, antti.vasara (at) tieto.com

Investors:
Lasse Heinonen, CFO, tel. +358 2072 66329, +358 50 393 4950, lasse.heinonen
(at) tieto.com 



TIETO CORPORATION



DISTRIBUTION
NASDAQ OMX Helsinki
NASDAQ OMX Stockholm
Principal Media



Tieto is the largest Nordic IT services company providing full life-cycle
services for both the private and public sectors and product development
services in the field of communications and embedded technologies. The company
has global presence through its product development business and global
delivery centres. Tieto is committed to developing enterprises and society
through IT by realizing new opportunities in customers' business
transformation. At Tieto, we believe in professional development and results. 

Founded 1968, headquartered in Helsinki, Finland and with approximately 14 000
experts, the company operates in over 20 countries with net sales of
approximately EUR 1.6 billion. Tieto's shares are listed on NASDAQ OMX in
Helsinki and Stockholm. Please visit www.tieto.com for more information.