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Elektrobit Group Oyj - EB, ELEKTROBIT CORPORATION DISMISS AND TEMPORARILY DISMISS PERSONNEL IN FINLAND AFTER THE CONCLUSION OF THE PERSONNEL NEGOTIATIONS

December 13, 2010

EB, ELEKTROBIT CORPORATION DISMISS AND TEMPORARILY DISMISS PERSONNEL IN FINLAND AFTER THE CONCLUSION OF THE PERSONNEL NEGOTIATIONS


STOCK EXCHANGE RELEASE

Free for publication on December 13, 2010, at 9:00 am (CET+1)

 

EB, ELEKTROBIT CORPORATION DISMISS AND TEMPORARILY DISMISS PERSONNEL IN FINLAND AFTER THE CONCLUSION OF THE PERSONNEL NEGOTIATIONS


EB, Elektrobit Corporation concluded the personnel negotiations started on October 28, 2010, with its personnel in Elektrobit Wireless Communications Ltd and Elektrobit Corporation in Finland on December 9, 2010, and the company has today decided the measures to be taken. The target of the negotiations has been to improve the profitability and to decrease the amount of personnel to correspond the decreased sales volumes and sales outlook in Wireless Solutions Business. 


As the result of the negotiations EB will dismiss 60 employees and temporarily dismiss 85 employees in Wireless Solutions Business and EB corporate functions based on financial and production-related reasons. The temporary dismissals are going to be indefinite but estimated to remain in force until August 1, 2011. The dismissals and temporary dismissals will affect all EB's offices in Finland located in Espoo, Kajaani, Oulu, and Tampere. At the beginning of the negotiations the estimated number of dismissals or temporary dismissals was approximately 150 at the maximum. After the personnel reductions EB employs approximately 1,520 persons of which approximately 500 in Finland.


The terminations of employments, and other measures resulting from the decreased amount of personnel and lower sales volumes, are estimated to result in non-recurring charges of approximately EUR 2.6 million in the second half of 2010. The estimated cost savings resulting from the dismissals and temporary dismissals, if fully executed, will be approximately EUR 4 million and the cost savings from the other related measures approximately EUR 1 million by the end of the first half of 2011. The earlier mentioned non-recurring charges do not affect the outlook for EB's operating profit  published on October 28, 2010, in the January-September 2010 interim report.


The restructuring measures have no direct impact on EB's customer projects.


Oulu, December 13, 2010


Elektrobit Corporation
Jukka Harju
CEO


Further information:


Jukka Harju
Chief Executive Officer
Tel. +358 40 344 5466



Distribution:


NASDAQ OMX Helsinki
Major media

 

EB, Elektrobit Corporation
EB develops advanced technology and transforms it into enriching end user experiences. EB specializes in demanding embedded software and hardware solutions for the automotive industry and wireless technologies. The company's net sales for the year 2009 totaled EUR 153.8 million. Elektrobit Corporation is listed on the NASDAQ OMX Helsinki. www.elektrobit.com