End of co-operation negotiations at Innofactor

30.10.2018 08:50 CEST/EET (UTC +2)

Innofactor Plc Stock Exchange Release October 30, 2018, at 8:50 Finnish time

 

Innofactor announced on October 8, 2018, that it would start co-operation negotiations on production-related and financial grounds in its Finnish companies: Innofactor Plc, Innofactor Software Ltd, Innofactor Business Solutions Ltd, and Innofactor CS Ltd. The co-operation negotiations were targeted at superiors of the SI Finland delivery unit in the said companies, plus a small group of separately defined roles. The goal of the negotiations was to achieve, through reorganization of tasks, an operation model that would better support our strategy, and also an annual positive effect of EUR 2.0 million in Innofactor's operating margin starting from 2019.

Innofactor concluded the negotiations on October 29, 2018. Innofactor reduces the number of personnel by a total of 12 or 13, which will result in annual savings of EUR 1.4 million starting from 2019. However, the number of employees laid off does not exceed 8 persons in any of the Innofactor companies. Additionally, tasks are reorganized so that persons, who have previously worked either partially or totally in internal tasks, can be transferred to customer work. This is estimated to improve the operating margin approximately EUR 1.0 million annually. In total, starting from 2019, the current actions are estimated to result in a positive annual effect of EUR 2.4 million in the operating margin.

In the Finnish delivery organization, we manage to remove three levels of organization. This will be achieved by introducing self-organized teams and by replacing the current 50 superiors, most of whom are acting as superiors in addition to their actual tasks, with 16 full-time superiors and line managers, which means that a significant part of current superiors will have much more time for sales and customer work, and also by an arrangement in which the Innofactor Group's CEO Sami Ensio will handle also the tasks of the Finnish Country Manager. From now on in Finland, there will only be two levels of superiors between the professionals and the CEO.

"I am very sorry for all the persons we had to lay off in this situation. Good people will have to go, because their roles do not exist anymore in the new organization. I wish to take the opportunity here to thank them publicly for all the work they have done for Innofactor," says Innofactor's CEO Sami Ensio. "At the same time, I am enthusiastic about our new organization and my role in it. In the reorganization, the teams in Finland will become self-organized. I believe this will improve customer orientation, work quality, efficiency, and employee satisfaction. Decreasing organization levels will recreate the entrepreneurial spirit of the times when Innofactor was started, make it faster to implement decisions in practice, and help us reach our business goals. I enjoy very much working with customers, and my new, expanded role will give me better possibilities for it. I believe these changes will have a refreshing effect on Innofactor's operation."

 

Espoo, October 30, 2018

INNOFACTOR PLC

Board of Directors

 

Additional information:
Sami Ensio, CEO
Innofactor Plc
Tel. +358 50 584 2029

Distribution:
NASDAQ Helsinki
Main media
www.innofactor.com

Innofactor
Innofactor is the leading driver of the modern digital organization in the Nordic Countries for its over 1,500 customers in commercial, public and third sector. Innofactor has the widest solution offering and leading know-how in the Microsoft ecosystem in the Nordics. Innofactor has approximately 600 enthusiastic and motivated top specialists in Finland, Sweden, Denmark and Norway. In 2013–2017, the annual growth of Innofactor's net sales has been approximately over 20%. The Innofactor Plc share is listed in the technology section of the main list of NASDAQ Helsinki Oy. www.innofactor.com #ModernDigitalOrganization