Barco announces further cost saving measures
Regulated information
Kortrijk, 2 December, 2008. Barco continues the reduction in headcount as part of its overall cost reduction plan announced with the results of 2Q08. Following the initial reduction in staff in September, the number of employees will be further reduced by around 200 people worldwide, 130 of whom will be leaving the company this month. The remainder of these employees will leave the company in the course of 2009.
In July Barco announced a euro 30 million cost reduction plan in light of the deteriorating global economic environment.This plan defined four ways to reduce cost:
1. The maximum exploitation of internal synergies. In this respect Barco has started the creation of one common operations organization. At the same time one unified and global corporate marketing team has been set up.
2. The simplification of the company structure. The presentation business unit was integrated into the Media & Entertainment division sales channels and the simulation and avionics activities were combined in the Avionics & Simulation division.
3. Cost containment actions. In Sales & Marketing, Customer Services and R & D the necessary actions are being taken to achieve a higher level of efficiency. Other cost containment actions lie in the areas of marketing expenditure, travel and supporting services.
4. Sale of non-strategic activities. The Maritime Safety and Surveillance activity, based in Stuttgart, Germany, was sold to Thales in September 2008. An agreement to divest the medical advanced visualization business, based in Edinburgh, Scotland, was signed with Toshiba Medical Systems end November 2008.
Barco expects to see the full impact of this cost reduction plan in its 2009 results.
About Barco
Barco, a global technology company, designs and develops visualization products for a variety of selected professional markets. Barco has its own facilities for Sales & Marketing, Customer Support, R&D and Manufacturing in Europe, North America and Asia Pacific. Barco (NYSE Euronext Brussels: BAR) is active in more than 90 countries with about 3600 employees worldwide. Barco posted sales of euro 747 million in 2007.
© Copyright 2008 by Barco - May be reproduced by professional press only
For more information, please contact
