KIT digital will axe 22% of its staff and reduce its workforce to 300 under a major restructuring programme that will generate net cash savings of USD 40 million annually, according to the company. The restructuring is expected to be undertaken during Q3 2012 and completed by the end of this year. The restructuring is […]
KIT digital will axe 22% of its staff and reduce its workforce to 300 under a major restructuring programme that will generate net cash savings of USD 40 million annually, according to the company.
The restructuring is expected to be undertaken during Q3 2012 and completed by the end of this year.
The restructuring is aimed at realigning the companys operations and streamlining its general corporate functions to focus expertise in the companys principal areas of operation. KIT digital will continue to invest in its core competencies: KIT Cosmos video content management system (VCMS) software, supported by Managed Services and Professional Services; and the KIT Cloud web-based video-asset management system.
Speaking about the restructuring, Peter Heiland, KIT digitals interim chief executive officer said: By accelerating the integration of the company, we will be able to enhance our product offerings, improve time-to-market efficiency, and bring the business to a place of financial strength. While we have completed some non-core divestures and reduced the non essential support infrastructure, we are preserving all of the strategic initiatives surrounding our core competencies as we believe they will drive significant growth.
The company currently estimates that it will record a restructuring expense in Q3 2012 of approximately USD 4 million consisting primarily of one-time termination benefits of which the majority will be paid prior to the end of 2012.
