17 February 2022
The IT market shift is accelerating with the volumes for traditional infrastructure services continuing to decline as anticipated. Multi-cloud (public-private) volumes and cloud transformation are driving the market growth. The development is fueled by automation as a key driver for efficiency and customers’ cloud adoption.
To improve business performance and enable investments for multi-cloud services, Tietoevry Connect – one of the six new end-to-end businesses (former Cloud & Infra), needs to adapt its cost structure to the volume development in traditional infrastructure services. Hence, a savings program targeting EUR 50 million annualized savings has been initiated. The savings initiatives will cover costs related to external purchases, subcontractors as well as personnel.
Savings related to personnel involve adjusting capacity in traditional infrastructure services, reducing administrative roles, increasing automation and further utilizing the global delivery model. Employee consultation processes with the labor unions are today initiated in the Nordics, with an estimated reduction of up to 600 roles in total, of which up to 250 in Sweden, up to 190 in Norway and up to 160 roles in Finland. The consultation processes will be conducted according to the legislation and practices in each country and potential actions are estimated to be completed by end of 2022.
Tietoevry will do the utmost to support the affected employees during this time of change. Regular communication along the process, training and re-skilling opportunities as well as possibilities for internal mobility are promoted across the company.
“Customers are shifting their investments towards cloud-based services with an enhanced speed and the demand is simultaneously decreasing in traditional infrastructure services. We need to adapt to these changes and align our cost structure to this volume shift. These actions are never easy when there is an impact on personnel. We will do our best to support the affected employees and minimize the impact to them,” says Johan Torstensson, Managing Director at Tietoevry Connect.
The announced actions enable further investments in multi-cloud services driving Tietoevry Connect’s competitiveness and future growth – advancing the foundation set during the integration further towards a unified cloud-native service portfolio and streamlined operations.
More information:
Tietoevry Communications, news@tietoevry.com, +358 40 570 4072
Tietoevry creates purposeful technology that reinvents the world for good. We are a leading technology company with a strong Nordic heritage and global capabilities. Based on our core values of openness, trust and diversity, we work with our customers to develop digital futures where businesses, societies, and humanity thrive.
Our 24 000 experts globally specialize in cloud, data, and software, serving thousands of enterprise and public-sector customers in more than 90 countries. Tietoevry’s annual turnover is approximately EUR 3 billion and the company’s shares are listed on the NASDAQ exchange in Helsinki and Stockholm, as well as on Oslo Børs. www.tietoevry.com