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- Stock Exchange Release
- 28.07.2006 07:15 CET
NEED TO CUT 300 PERSON WORK-YEARS IN YIT?S NETWORK SERVICES
STOCK EXCHANGE RELEASE, JULY 28, 2006 at 08:15
NEED TO CUT 300 PERSON WORK-YEARS IN YITS NETWORK SERVICES
YIT Industrial and Network Services Ltd will start up codetermination negotiations concerning efficiency-boosting measures and possible labour cutbacks. The negotiations will be carried out due to reasons of economy and production, and concern the Network Services business unit in all of Finland.
The need for cutbacks is about 300 person work-years. YIT attempts to carry out part of these reductions by placing personnel in new positions at YIT. In addition, pension arrangement opportunities will be assessed.
About 1,200 people work for YIT Industrial and Network Services Ltds Network Services business unit. During the first part of the year, the business units order backlog has declined and its profitability has weakened substantially. Investments by teleoperators, maintenance works and repairs have decreased and the peak in broadband connection deliveries has levelled off.
Due to the changes in the business environment, resources must be adapted to match lower demand.
Network Services has generated about 3-4 per cent of YIT Corporations revenue and employs 5 per cent of its personnel.
Due to the small share of revenue accounted for by this business, the weak market situation for Network Services does not change the YIT Groups outlook. In its Interim Report, which was released today, YIT estimates that the Groups full-year revenue and the pre-tax result for 2006 will increase on the previous year.
YIT is a versatile service company that offers technical infrastructure investment and upkeep services for the property and construction sector, industry and telecommunications. The group has over 21,000 employees in eight countries.
For additional information, contact:
Pekka Frantti, President, YIT Industrial and Network Services Ltd, tel. +358 50 390 0932 Sakari Toikkanen, Executive Vice President, YIT Corporation, tel. +358 20 433 2336 Petra Thorén, Vice President, Investor Relations, YIT Corporation, tel. +358 20 433 2635, +358 40 764 5462
YIT CORPORATION
Veikko Myllyperkiö Vice President, Corporate Communications
Distribution: Helsinki Stock Exchange, principal media, www.yitgroup.com