TeliaSonera eliminates overlaps in the Business Area Integrated Enterprise Services

TeliaSonera Finland Oyj launches negotiations under the Act on Cooperation within Undertakings in the Product Management & Development, Professional Services & Production, Adapted Solutions and Business Control & Development units of the Integrated Enterprise Services business area in order to adapt the number of jobs to the changed business environment. It is estimated that these negotiations may lead to termination of altogether 90 jobs in Finland. The Finnish operations of these units employ a total of about 1170 people.

At the beginning of 2007, TeliaSonera carried out a major reorganization, in which its business was divided into three business areas. The business areas are Mobility, responsible for mobile phone operations, Broadband, responsible for fixed voice and broadband business, and Integrated Enterprise Services (IES), responsible for corporate business.

IES is responsible for all Nordic and Baltic business where TeliaSonera is engaged in managing the internal IT and telecom infrastructure of enterprises. IES also takes on responsibilities for enterprises’ total telecommunications needs. Customer offerings include networked IT services, voice and data solutions, systems integration and converging services as well as highly standardized solutions for the SME segment. Examples of services are management of LAN, servers, work stations, IP PABXs and call centers, mobility and security solutions and horizontal standard applications, e.g. e-mail services.

In the IES organization, Adapted Solutions is mainly responsible for services for large and international companies and public corporations, Modular Solutions is responsible for services for medium-sized customers, and SME Solutions is responsible for services for companies with less than 100 employees, while the Cygate Group is specialized in demanding systems integration customers. The maintenance of products and services has been concentrated in the Professional Services & Production unit, whereas product management and development have been concentrated in the Product Management & Development unit. IES employs a total of approximately 3,400 people in different countries.

During the first half of 2007, the net sales of IES were up by 3,8% on the previous year, amounting to about EUR 730 million. Without the acquisitions of Cygate AB in February and Dimension Data AB in April, the net sales would have fallen by little less than 1%. The operating income of the business area was EUR -33 million in the first six months of the year (EUR –4 million in Jan–Jun 2006). About 95% of the net sales of the business area are generated in Sweden and Finland. The fall in profitability is particularly due to the price declines in mobile and data communications, the general increase in the cost level, and the higher subcontracting costs.

“The reorganization was implemented based on the information from 2006. The first half of 2007 has shown that the efficiency of operations does not in all respects meet the requirements of the markets. We will now strive to identify and eliminate overlapping operations by tightening up the operating models and by modifying the work processes, as a result of which certain products and jobs will end. We have a number of ongoing growth-accelerating projects aiming to expedite the capture of new markets and to launch new products, but these projects alone do not suffice to improve our profitability”, says Juho Lipsanen, President of Business Area IES..

“The target of IES is to strenghten it’s position in the Nordic telecom & IT market. This provides actions increasing efficiency and improve capability to deliver sophisticated integrated solutions to meet demanding customer needs and even more customer oriented approach” says Mr Lipsanen.

The employer/employee negotiations that are now launched will look into the redeployment and retraining opportunities provided within the company. Those who fail to be redeployed will be transferred to TeliaSonera Finland’s Competence Pool. The Competence Pool provides employees with training and on-the-job training positions, and gives them an opportunity to seek jobs during a period that is longer than the regular period of notice. The launched negotiotations are part of the old turn-around program initiated in 2005. The Competence pool was established also then. TeliaSonera Finland has good experiences from usage of Competence Pool operations and services. Now there is appr. 100 persons in the Competence Pool and at the same time there is more than 150 open vacancies in TeliaSonera Finland.

The employer/employee negotiations will deal with the grounds for and the effects of any adjustment of the number of jobs as well as any alternative lines of action. The negotiations will also deal with the training and redeployment opportunities provided to the employees whose jobs are about to end. It is estimated that these changes may lead to termination of altogether 90 jobs for financial and production-related grounds in the following units: Product Management & Development about 35, Professional Services & Production about 35, Adapted Solutions about 15, Business Control and Development 5. The Finnish operations of these units employ a total of about 1170 people.

An invitation to the negotiations has been issued today in Finland, and it is proposed that the first negotiations be held on 10 September, 2007. TeliaSonera’s Business Area IES is a multinational organization where measures affecting the personnel’s position are taken under the agreements and legislation of each country. In Sweden, the company is continuously discussing the optimization of the efficiency of operations with the employee representatives.

Further information:
Ahti Martikainen, Vice President of Communications, Business Area IES, TeliaSonera, tel. +358 403024500
Juha Pentti, Vice President of Human Resources, TeliaSonera in Finland, tel. +358 405074668.