YIT CORPORATION PRESS RELEASE September 15, 2006 at 10:15
YIT Industrial and Network Services Ltd's Network Services business unit has carried out codetermination negotiations to boost operational efficiency and reduce personnel to match the changed market situation. The need for personnel cutbacks has been confirmed to amount to 308 persons. Of the reductions, 92 will be made through pension arrangements, layoffs, transfers to new positions and other solutions. 216 persons will be made redundant due to reasons of economy and production.
The bulk of the cost effects of the personnel cuts - about EUR 6 million - will be recognized in the third-quarter result of 2006. The final cost effects depend on the success of the employment measures that will be initiated after the conclusion of the codetermination negotiations. Additional costs could amount to about EUR 3 million at most and will be recognized in the result for the first half of 2007.
The placement of those dismissed into other positions at YIT will be supported, and all those made redundant will be offered the opportunity to participate in job-seeking coaching that is paid for by the employer. YIT Industrial and Network Services will also arrange additional and supplementary training for new tasks.
Personnel cuts were necessary because the market situation of the Network Services business unit has weakened significantly and permanently during the present year. Investments by teleoperators, maintenance works and repairs have decreased and the peak in broadband connection deliveries has levelled off. The solution that is now being implemented serves to adapt resources to match lower demand.
About 1,200 people work for the Network Services business unit. Network Services has generated about 3-4 per cent of YIT Corporation's revenue and employs 5 per cent of its personnel.
YIT has previously released a stock exchange bulletin on the commencement of the codetermination negotiations on July 28, 2006.
For additional information, contact:
Pekka Frantti, President, YIT Industrial and Network Services Ltd, tel. +358 50 390 0932 Antti Nurminen, President, Network Services business unit, YIT Industrial and Network Services Ltd, tel. +358 40 512 9876 Sakari Toikkanen, Executive Vice President, YIT Corporation, tel. +358 20 433 2336
Vice President Corporate Communications
Distribution: Helsinki Stock Exchange, principal media, www.yitgroup.com
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