Digia Oyj - Company Announcement

DIGIA'S COOPERATION NEGOTIATIONS AIMED TOWARDS THE MOBILE BUSINESS ADAPTATION COMPLETED. THE COMPANY WILL RENEW ITS ORGANISATION TO MATCH THE CHANGED OPERATIONAL ENVIRONMENT

Helsinki, 2011-09-29 08:00 CEST (GLOBE NEWSWIRE) -- DIGIA PLC STOCK EXCHANGE
RELEASE 29 September 2011, 09:00 a.m. 

DIGIA'S COOPERATION NEGOTIATIONS AIMED TOWARDS THE MOBILE BUSINESS ADAPTATION
COMPLETED. THE COMPANY WILL RENEW ITS ORGANISATION TO MATCH THE CHANGED
OPERATIONAL ENVIRONMENT 

Digia Plc has completed the cooperation negotiations it began on 11 August
2011, aimed towards the mobile business adaptation. As a result of the
negotiations, Digia will downsize a total of some 170 employees belonging
mainly to the company's Mobile Solutions segment, from the sites in Helsinki,
Jyväskylä, Oulu and Tampere. 

Personnel reductions will be carried out gradually, for the main part by end of
year 2011. 

The company estimates that the support measures and staff reductions will
entail a one-off expense of approximately EUR 0,6 million, which will be
expensed in the company's result for the third quarter of 2011. 

The substantial decline in demand of the product creation services that started
during the first quarter of 2011, and the resulting fundamental change in the
mobile market has permanently changed the operational environment for Digia's
Mobile Solutions segment and has required remarkable adaptation activities from
the company. 

As a result of this change the company business will transform to the extent
that the current division of business into Enterprise and Mobile Solutions
segments is no longer appropriate. Because of this and while the uncertainty
concerning general economic outlook is continuously growing, Digia's Board of
Directors has decided on a company organisation renewal. The renewal is aimed
to improve the company's entire business efficiency through development and
concentration of company's offering and enhancing the focus of resources. 

As the operational reorganisation will require re-evaluation of company
functions and people's job descriptions, the company is today initiating new
company wide cooperation negotiations. In scope of the negotiations are all
domestic operations excepting mainly the personnel within the actions regarding
earlier co-operation negotiations and now completed negotiations. In total, the
negotiations concern some 770 company employees. Company estimates that the
downsizing need concerns maximum of 80 employees, to whom the company is unable
to assign work for in the operations accordant to the new organisation. 


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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