Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
The high-tech consultancy company Cybercom is planning to reduce its staff by 160 employees due to the global economic slowdown that will more strongly impact the Nordic market for IT consultancy services in 2009. The planned job cuts may affect up to 110 employees in Finland, in Tampere, Rauma and Helsinki. In addition, some 50 employees in Sweden may be reduced in Stockholm and Östersund.
These measures are expected to cut annual costs by SEK 80 million and give full effect from 2010, when the programme is expected to have a considerable positive effect on earnings.
In Sweden, Cybercom has begun personnel negotiations. In Finland, Cybercom will immediately start consultations with employee representatives. Negotiations are estimated to be completed in early April. The cutbacks affect administrative staff and consultants. In addition, there are ongoing measures to streamline the Group´s cost structure. Cybercom also strengthens its focus on increasing its outsourcing and turnkey sales efforts.
"It´s difficult to have to part from some of our skilled employees," says Patrik Boman, president and CEO of the Cybercom Group. "But in the current market, it´s important to act fast and adapt operations to current conditions. These measures reinforce our competitiveness and prepare us for the long-term. Cybercom has a strong Nordic position, which will continue going forward."
The measures are estimated to entail a non-recurring expense of SEK 30 million that will affect EBIT for the January-March 2009 period, but will give a positive effect for the full year. The measures are expected to give a cost reduction of SEK 80 million annually with full effect from 2010, when the company expects the programme to have a considerable positive effect on earnings.
The cost-efficiency programme will not affect customer projects. After these measures, Cybercom will have some 1,400 employees in the Nordic countries.
Eurofound (2009), Cybercom, Internal restructuring in Finland, factsheet number 68323, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/68323.