Elektrobit Group Oyj - ELEKTROBIT (EB) TARGETS COST SAVINGS OF ABOUT EUR 1.5 MILLION BY TEMPORARILY LAYING OFF A MAXIMUM OF 150 EMPLOYEES IN WIRELESS BUSINESS SEGMENT
August 22, 2013
ELEKTROBIT (EB) TARGETS COST SAVINGS OF ABOUT EUR 1.5 MILLION BY TEMPORARILY LAYING OFF A MAXIMUM OF 150 EMPLOYEES IN WIRELESS BUSINESS SEGMENT
STOCK EXCHANGE RELEASE
Free for publication on August 22, 2013, at 5.00 pm. (CEST+1)
ELEKTROBIT (EB) TARGETS COST SAVINGS OF ABOUT EUR 1.5 MILLION BY TEMPORARILY LAYING OFF A MAXIMUM OF 150 EMPLOYEES IN WIRELESS BUSINESS SEGMENT
Elektrobit (EB) has today concluded personnel negotiations to temporarily lay off a maximum of 150 employees in its Wireless Business Segment. The negotiations were started on August 8, 2013 to adjust the company's cost level to correspond the weakened demand outlook for the rest of the year. As a result of the negotiations, EB has decided to execute the temporary layoffs gradually following the actual capacity situation and need. In September, EB aims to temporarily lay off a maximum of 64 employees full or part time for a maximum of 90 days. If necessary, the company can execute additional temporary layoffs a maximum of 86 employees during the fall. The temporary layoffs are estimated to last no later than until the end of January 2014. With these temporary layoffs, EB estimates to achieve a total of EUR 1.5 million cost savings, which are expected to materialize mainly during the fourth quarter. The need for temporary layoffs and cost savings resulting respectively can change as the outlook for the rest of the year develops.
The temporary layoffs layoffs concern employees working in Elektrobit Wireless Communications Ltd and all EB's sites in Finland, which are Kajaani, Oulu and Tampere. Currently 536 employees are working 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 weakened demand outlook for the rest of the year and the planned cost savings resulting from the temporary layoffs have been taken into account in the outlook for 2013 given in the interim report January-June 2013. The interim report January-June 2013 is available in the company's web page at www.elektrobit.com .
Oulu, August 22, 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
