Teleste has announced that it will be reducing working hours for its European staff after lowering its financial guidance for the year 2024. The tech supplier attributed this move to continued lower-than-expected demand in the European market for its Broadband Networks business.
While Teleste has observed an increase in volumes in North America, these gains are not enough to offset the decline in European business. The company also highlighted uncertainties regarding the timing of deliveries and projects for the remainder of the year.
Teleste now estimates that its net sales in 2024 will reach between €120-135 million, with an adjusted operating result of €1-4 million. This represents a significant drop from its previous projection of €3-6 million in sales.
The company attributed the updated guidance to the persisting lower-than-expected demand in the European market for the Broadband Networks business. Teleste emphasized that, although North American delivery volumes are starting to grow, they will not fully compensate for the volume outlook in Europe. The company further acknowledged the ongoing uncertainty regarding the timing of deliveries and projects throughout the year.
"We are taking decisive action to adapt to the current market conditions," said Jukka Jokiniemi, CEO of Teleste. "The reduction in working hours is a necessary step to ensure the long-term sustainability of our business."
Teleste stated that its latest cost-saving measures will result in savings of over €8 million annually.