Type
Internal restructuring
Country
European Union
Region
Location of affected unit(s)
Sweden, Western Europe
Sector
Information / Communication
Computer Programming, Consultancy And Related Activities
Computer Programming, Consultancy And Related Activities
62 - Computer programming, consultancy and related activities

220 jobs
Number of planned job losses
Job loss
Announcement Date
9 October 2006
Employment effect (start)
Foreseen end date

Description

The IT consulting company Teleca is going to cut 220 jobs in Western Europe. In Sweden, Teleca plans to concentrate its activities to the Malmö region. The company also plans to significantly increase the software production and testing in the Russian affiliate. The county boards for Ronneby, Umeå and Stockholm in Sweden have been given notice that the company has the intention to possibly reduce staff with 150 people and close Teleca Mobile part of these local sites. Negotiations with trade unions have already been initiated. René Svendsen-Tune, CEO of Teleca, explained that the financial performances were not satisfactory and that further actions needed to be taken. « In the company we have strong assets, which we can leverage better, such as our well performing Russian affiliate. By significantly ramping up our R&D in Russia, we can maintain current strong R&D efforts at significantly reduced cost (…) » he said.


Sources

  • 9 October 2006: Press release by Teleca
  • 9 October 2006: Sveriges Radio

Citation

Eurofound (2006), Teleca, Internal restructuring in European Union, factsheet number 64261, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/64261.