Finland's Tieto to cut a further 5 pct of workforce

Reuters

HELSINKI, Oct 14 (Reuters) - Finnish IT services providerTieto plans to cut up to 770 jobs, about 5 percent ofits workforce, as it contends with a drop in technology spendingin the telecoms sector.

Tieto, which competes with bigger technology servicescompanies such as IBM and Accenture, said thejob losses and earlier cost-cutting measures will save thecompany more than 50 million euros ($68 million) a year.

The latest cuts follow 1,600 job losses in a restructuringannounced in March 2012 and completed this year.

Europe's prolonged economic downturn and heated costcompetition in the telecoms sector has discouraged companiesfrom committing to investment in large IT projects.

Tieto said the latest cuts will be completed by the end ofthe first quarter of 2014 and will result in about 45 millioneuros in restructuring costs this year. It previously forecastsuch costs at about half of the 57 million euros it booked in2012.

Tieto finished the second quarter with 15,447 employees.

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