YIT transformation program progressing – new organisational structure effective from 1 April 2023
- The change negotiations concerning salaried employees in Finland have been completed.
- The new organisational structure consists of three customer-focused, agile business segments: Housing, Business Premises, and Infrastructure.
- YIT has entered into a strategic partnership with Tech Mahindra to strengthen IT services.
- Actions taken to date will result in annualised cost savings of EUR 15–17 million by the end of 2024.
The transformation program, launched in February 2023 to improve the company’s performance and competitiveness, is progressing. As YIT has earlier announced, the targeted, inflation-adjusted run-rate cost savings are expected to be at least EUR 40 million by the end of 2024. More than half of the planned run-rate cost savings are expected to be achieved already during 2023.
“We are strengthening YIT and simplifying the way we run our business. The new organisational structure and operating model will increase the clarity, transparency, and the efficiency of our operations. We have reduced layers in the organisation and brought decision-making closer to both the work site and the customer. Strong, shared processes will enhance our competitiveness across segments. With these changes we can further increase the added value we create for our customers,” said Heikki Vuorenmaa, President and CEO of YIT Corporation.
New organisational structure effective from 1 April 2023
As part of the transformation program, YIT has simplified its organisational structure. The new organisation consists of three agile and customer-focused business segments: Housing, Business Premises, and Infrastructure. The operations in the former Property Development segment have been allocated to the other segments and Group Functions.
The new organisation will be effective from 1 April 2023, and YIT will change its segment reporting to correspond to the new organisational structure starting from the Half-year Report 1–6/2023. Restated comparison figures for the new segment structure will be published before the release of the Half-year Report 1–6/2023.
Change negotiations completed
As part of the program, YIT initiated change negotiations in Finland. The negotiations concerned salaried and senior salaried employees, as well as directors, in Finland. YIT estimated earlier that the planned changes could result in a reduction of approximately 150 jobs at most in Finland.
As a result of the negotiations, approximately 130 jobs will be reduced in Finland. The reductions will be achieved through redundancies, the outsourcing of IT functions, voluntary resignations, expiring fixed-term employment relationships, and retirements. In addition to the personnel reductions, the company will implement temporary layoffs in Finland.
YIT has entered into a strategic partnership with Tech Mahindra
YIT has entered into a strategic partnership with Tech Mahindra, a leading provider of digital transformation, consulting, and business re-engineering services and solutions. Going forward, Tech Mahindra will provide a significant part of YIT's IT services, harmonising and consolidating the current services to one dedicated supplier. The partnership will support YIT's objectives to strengthen digitalisation and data management and improve the company's competitiveness. As part of the partnership, approximately 20 YIT employees will transfer to Tech Mahindra on 1 May 2023.
YIT will provide updates on the progress and costs of the transformation program in connection with its financial reporting.
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YIT is the largest Finnish and a significant North European development and construction company. We develop and build sustainable living environments: functional homes, future-proof public and commercial buildings, infrastructure for smooth mobility, and renewable energy solutions to benefit the climate. We employ approximately 5,000 professionals in nine countries: Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Czech Republic, Slovakia and Poland. In 2022, our revenue amounted to EUR 2.4 billion. YIT Corporation's share is listed on Nasdaq Helsinki. Read more: www.yitgroup.com