Elektrobit Group Oyj - THE ESTIMATED COST SAVINGS FROM TEMPORARY LAYOFFS IN ELEKTROBIT CORPORATION'S (EB) WIRELESS BUSINESS SEGMENT WILL BE APPROXIMATELY EUR 0.8 MILLION
November 15, 2013
THE ESTIMATED COST SAVINGS FROM TEMPORARY LAYOFFS IN ELEKTROBIT CORPORATION'S (EB) WIRELESS BUSINESS SEGMENT WILL BE APPROXIMATELY EUR 0.8 MILLION
STOCK EXCHANGE RELEASE
Free for publication on November 15, 2013, at 4.00 pm. (CET+1)
THE ESTIMATED COST SAVINGS FROM TEMPORARY LAYOFFS IN ELEKTROBIT CORPORATION'S (EB) WIRELESS BUSINESS SEGMENT WILL BE APPROXIMATELY EUR 0.8 MILLION
Elektrobit Corporation (EB) has today concluded measurements started on August 8, 2013 to adjust its cost level in its Wireless Business Segment. With these measurements, EB estimates to achieve approximately EUR 0.8 million cost savings, which are expected to materialize mainly during the fourth quarter 2013. The company has temporarily laid off 74 employees full or part time for a maximum of 90 days. The company has today decided that no further temporary layoffs will be implemented. Due to the more precise outlook towards the end of the year in Wireless Business Segment, it has been possible to reduce the amount of the temporary layoffs from the maximum amount estimated earlier.
EB started cost saving measures targeting EUR 1.5 million cost savings in Wireless Business Segment in August 2013 to adjust the its cost level to correspond the weakened demand outlook by temporarily laying off a maximum of 150 employees full or part time for a maximum of 90 days in Wireless Business Segment. The underlying reasons for the layoffs are the decreased order volume for the second half of 2013 from a large customer of EB, and delays in some special terminal projects. EB targets to achieve a higher order volume by the beginning of 2014.
The reduced need for temporary layoffs and thereafter the more precise estimate of the cost savings will not affect company's outlook for 2013 or Wireless Business Segment's outlook for the second half of 2013 given in the interim report January-September 2013. The interim report is available in the company's web page at www.elektrobit.com/investors .
Currently 510 employees are employed in Wireless Business Segment. The temporary layoffs concern employees working at all EB's sites in Finland, which are Kajaani, Oulu and Tampere. The temporary layoffs have been executed gradually according to the actual capacity requirements and are estimated to last no longer than until the end of January 2014.
Oulu, November 15, 2013
Elektrobit Corporation
Jukka Harju
CEO
Further information:
Hannu Huttunen
President of the Wireless Business Segment
Tel. +358 40 344 3507
Distribution:
NASDAQ OMX Helsinki
Principal media
Elektrobit (EB)
EB creates advanced technology and turns it into enriching end-user experiences. EB is specialized in demanding embedded software and hardware solutions for wireless and automotive industries. The net sales from continuing operations in 2012 totaled MEUR 185.4. Elektrobit Corporation is listed on NASDAQ OMX Helsinki. www.elektrobit.com
