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 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.
Board of Directors
Juha Varelius, President and CEO
Tel. +358 400 855849, e-mail: email@example.com
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