Driven by tougher market conditions in both the Mobile and the CC&O Headset
business, GN Netcom is launching a comprehensive restructuring program in order
to turn around the Mobile division's unsatisfactory earnings and to strengthen
profitability in CC&O Headsets. The program comprises a significant
simplification of the entire organization,including of the supply chain, a
stronger focus on selected core markets, key accounts and product segments and
a further simplification of the organization involving staff cuts by up to 250
employees. The program was developed in collaboration with the previous
Supervisory Board and is anchored in and approved by the new Supervisory Board
that took office effective June 16.
The new initiatives incorporated in the FAST program (FAST = Focused And
Simplifying Turnaround) build on the strategy presented in early 2007. The FAST
program is expected to be fully implemented in the second quarter of 2009.
Fully rolled out, the program will provide overhead savings in the magnitude of
DKK 150 million annually. Including the previously guided non-recurring costs
of DKK 75 million in 2008, the program will result in total non-recurring costs
of some DKK 200 million, most of which are expected to be expensed in 2008. The
majority of cost savings are expected to take effect from the end of 2008 and
early 2009, and the program will therefore have a limited effect on EBITA in
2008 relative to the previous guidance.
