EMCC European Monitoring Centre on Change

YIT

Company/Organisation:
YIT

Geographic Location

Country: Finland

Company

Sector: Construction
Construction
42 - Civil engineering
Number Employed: 1200
Group: YIT Group

Employment Effects

Announcement Date: 28-07-2006
Planned Job Reductions min: 308
Planned Job Reductions max: 308
Type of Restructuring: Internal restructuring
Direct Dismissals: 216
Other Job Reduction Measures: 92

Additional Information

Construction company YIT Industrial and Network Services Ltd’s Network Services business unit has carried out personnel 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 6 million euro – 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 personnel negotiations. Additional costs could amount to about 3 million euro 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. In July 2006, the YIT Industrial and Network Services - part of a versatile service company that offers technical infrastructure investment and upkeep services for the property and construction sector, industry and telecommunications - started personnel negotiations concerning efficiency-boosting measures and possible labour cutbacks. The YIT group has over 21,000 employees in eight countries.