TELESTE CORPORATION INVESTOR NEWS 2.3.2020 AT 14:10 EET
TELESTE TO INITIATE CO-DETERMINATION NEGOTIATIONS
Teleste Corporation will initiate co-determination negotiations in accordance with the Act on Co-operation within Undertakings in order to adapt its operations. The negotiations may lead to possible redundancies, temporary lay-offs and part-time employment contracts due to production and financial reasons.
The reason for the adjustments is the ongoing technological transformation in the Network Products business area that has led to decreased demand for traditional access network products, as stated in the 2019 financial statement release. This change decreases the related capacity need in production and supporting functions. According to our estimate, the deliveries of distributed access architecture products will commence during the second half of 2020. However, the production of these new products does not require a corresponding amount of production capacity.
The negotiations will concern HFC business unit employees in Teleste Corporation's Operations, Logistics and Sourcing and customer support department at the Littoinen plant in Finland. The potential need for personnel reductions is estimated to maximum 35 people.
The negotiations will aim to find solutions for adapting Teleste's operations to the technological transformation in the market situation without endangering the company's growth opportunities.
ADDITIONAL INFORMATION: Jukka Rinnevaara, tel. +358 2 2605 611