Following on from its previously announced Entrepreneurial Solution, Getronics has decided to implement further restructuring and cost-effectiveness measures to match its operating costs to current market conditions and anticipated revenues. These measures are being taken to ensure that the Company can recover its profitability levels following its divestiture of non-core assets.
The measures will be implemented in the next few months and will consist of the following components:
- a reduction of approximately 1000 to 1200 employees in the overall workforce, of which, approximately 40% will be from overhead functions
- the initiation of a global re-skilling program including an intake of approximately 250 young graduates to further strenghen our capabilities in innovative technologies such as security, voice over IP, and Microsoft .Net software developments
- consolidation of the Company’s global data and helpdesk facilities and supporting IT-infrastructure, resulting in a more cost-efficient and effective support of our customers’ needs
- the closure of over 20 redundant offices and associated facilities/infrastructures
- the closure or disposal of approximately 10 under-performing assets, including stakes in under-performing joint ventures
The one-off costs for these additional restructuring and cost-effectiveness measures are expected to be in the range of EUR 50-60 million, and will not exceed the cash proceeds anticipated from the sale of the remaining basket of non-core assets announced as part of the Entrepreneurial Solution, nor affect the EUR 300 million to be set aside for the repayment of the subordinated Bonds.
About Getronics
With approximately 25,000 employees in over 30 countries, Getronics is one of the world’s leading providers of vendor independent solutions and services to professional users of Information and Communication Technology (ICT). Through consulting, integrating, implementing and managing Infrastructure Solutions and Business Solutions, Getronics helps many of the world’s largest global and local organisations to maximise the value of their technology investment and improve interaction with their customers. Getronics’ headquarters is in Amsterdam, with regional head offices in Boston and Singapore. Getronics’ shares are traded on Euronext Amsterdam (‘GTN’). For further information about Getronics, visit www.getronics.com