Tieto Oyj - Company Announcement

Tieto’s Product Development Services unit to announce personnel negotiations

Tieto Corporation STOCK EXCHANGE RELEASE 6 May 2014, 9.00 am EET

Tieto's Product Development Services (PDS) unit initiates measures to maintain
its healthy cost structure during the current volatile customer demand
situation. In addition to immediate cost savings measures, Tieto aims to reduce
a total of 180 positions globally from its PDS business. Of the redundancies,
70 are anticipated to materialize in Finland, 30 in Sweden, and 80 in other
countries. 

“Market situation for product development services continues to be very
challenging and volatility is high. These actions we are announcing today are
needed for PDS to adjust capacity to the current demand. The immediate costs
saving actions are necessary to manage our business in a responsible manner and
maintain our ability to build a long-term sustainable product development
services business,” says Antti Vasara, EVP, Product Development Services. 

In each country, Tieto will follow the local legislation and practices in the
process. In Finland and Sweden, the company will start the process by making a
proposal to employee representatives on 6 May 2014. 

On 25 April, Tieto announced its first-quarter results with continued
profitability improvement and organic growth of 3% in IT services. In PDS,
volatility continued and sales were declining in the first quarter. These
negotiations are part of the restructuring measures Tieto referred to in the
interim report. In 2014 overall, Tieto's restructuring needs will be based on
potential overcapacity in selected businesses, automation and the need to
realign the company's competence base. 


For further information, please contact:
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.