UPM to start employee negotiations on IT restructuring

UPM is restructuring its information technology (IT) operations and organisation. The aim of the restructuring is to build an integrated global IT function that meets current and future business needs in a better and more cost-efficient way.

The restructuring will be discussed in consultation with the employee representatives in several countries. The changes concern the IT units located in Finland, Germany, Belgium, the UK, France, the USA, Austria, Canada, Italy and Russia. The negotiations are expected to last until the beginning of December.

The negotiations will concern reorganisation of IT work, a significant decrease in the number of IT locations as well as a partial outsourcing and nearshoring of global IT services to eastern Central Europe.

Currently, the IT function employs 690 persons. The restructuring is expected to reduce the headcount by approx. 140 persons. The restructuring will be started immediately after the negotiations and will be completed by mid 2006. The negotiations will try to identify job opportunities in other functions within UPM but lay-offs cannot be avoided.


For further information, please contact:
Mr Conrad Frede, CIO, tel. +358 204 15 0230


UPM
Corporate Communications
October 17, 2005