DIGIA INITIATES COOPERATION NEGOTIATIONS TO COMPLETE ITS MOBILE BUSINESS ADAPTATION ACTIVITIES
DIGIA PLC STOCK EXCHANGE RELEASE 11 August 2011, 09:01 a.m.
DIGIA INITIATES COOPERATION NEGOTIATIONS TO COMPLETE ITS MOBILE BUSINESS ADAPTATION ACTIVITIES
Digia Plc will today initiate new cooperation negotiations aimed to reduce staff. The company’s objective is that with these cooperation negotiations the company’s Mobile Solutions business can be conclusively adapted to match the demand in the significantly changed market situation. The adaptation activities are an answer to the declined turnover and profitability in product creation services related business, that originate from the substantial and permanent decline in services demand which has created an overcapacity in human resources for the company.
Within the cooperation negotiations are the personnel in Mobile Solutions segment in all of the company’s offices in Finland. In addition within the negotiations are certain administrative and support functions. In total, approximately 290 employees are affected by the negotiations. The company estimates that the downsizing need concerns a maximum of 190 employees, to whom the company is unable to assign work. In the end of July, the company employed a total of 1,491 persons.
The negotiations and the need for personnel reduction doesn’t concern the Enterprise Solutions segment, which accounted for approximately 58 % of the company’s total turnover in 2010 and 62 % on the first half of this year. The company has evaluated the Enterprise Solution segment to grow organically at least according to the foreseeable moderate growth of the IT market during the rest of the year 2011 and its profitability to develop favourably and to remain at its normal good level.
By company outlook, the demand for the strong focus areas in Enterprise Solutions business – development of ERP, e-commerce and multi-channel customer experience management solutions – are at a good level. The company aims to strengthen the Enterprise Solutions segment through systematic training and targeted and precise recruiting.
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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