Teleste has withdrawn its financial guidance for 2020 as a result of the Covid-19 pandemic and has begun talks over the potential layoff of some 500 staff.
In a statement the Finnish tech firm said main European countries in its main market area had imposed strict and extensive restrictions that made it difficult to estimate the negative impact on sales.
“The burden on broadband networks has increased during the pandemic, but we estimate that, in order to ensure the smooth functioning of broadband services critical to society, network upgrades will be postponed to some extent,” said Jukka Rinnevaara, President and CEO of Teleste. “Until now, the impacts of the COVID-19 pandemic on the demand for Teleste’s products and the company’s ability to deliver have been limited. However, the situation is changing day by day. Effects on the services business can be substantial. If they are prolonged, the restrictions will have a negative impact on the company’s net sales and profitability”.
A consultation with approximately 500 of its 1,330 employees across the company has begun and will last for up to 90 days.