DGAP-News: Gigaset AG / Key word(s): Restructure of Company
Gigaset AG: Gigaset firms up its adjustment plans to strengthen its
competiveness
14.08.2012 / 15:45
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Gigaset firms up its adjustment plans to strengthen its competiveness
Munich, August 14, 2012 - Gigaset AG today defined in more detail the
program it announced on August 8, 2012, aimed at increasing efficiency and
cutting costs by at least EUR30 million a year, and presented it to
employees and employee representatives. The program comprises several
measures to help Gigaset safeguard its competitiveness in the current
difficult market climate. The company plans an organizational setup with
three entrepreneurial Business Units. The efficiency program envisages not
only cutting non-personnel and service costs, but also reducing the total
workforce from almost 1,700 to around 1,350. The job cuts should be
implemented responsibly. Initial effects from the cost-cutting and
efficiency program are already expected in 2013.
The efficiency program and planned reorganization are Gigaset's response to
the rapidly changing market conditions and the resultant decline in
earnings in its core business of cordless phones. The market has come under
strong pressure not least due to the continuing crisis in the euro area and
increasing consumer restraint as a result. The company is also feeling the
effects of the euro's continuing weakness, which is pushing up the costs of
purchasing materials.
Reorganization strengthens core business and benefits growth segments
By creating three Business Units, Gigaset intends to improve its
competitiveness especially in its core business of consumer products
(cordless phones). In addition, greater resources are to be invested in the
new growth segments of enterprise customers and home networking. All new
Business Units will largely operate independently and in an entrepreneurial
manner, thus having the freedom they need to be successful in their
respective markets. As of next year, the three Business Units are also to
be part of a new Product Center in Düsseldorf, where they will benefit from
being near to the Bocholt production site. Gigaset hopes to boost
efficiency by optimizing its geographical positioning.
'The new structure gives Gigaset the latitude it needs to adapt costs in
its core business more flexibly to its sales performance and also invest in
the growth topics of enterprise customers and home networking,' is how
Charles Fränkl, CEO of Gigaset AG, explains the reorganization. The company
plans to create about 50 jobs in the new Product Center. Employees who are
affected by the planned restructuring but are interested in subsequently
working at the new Product Center should be given the opportunity to
transfer.
Cost cutting is vital to sustainable competitiveness
As part of the cost-cutting and efficiency program, around 75 jobs are to
be eliminated at the Munich site and around 270 at the Bocholt plant.
Around 30 positions are to be cut abroad. The company aims to reduce
non-personnel costs by cutting advertising, transportation and office
costs, hence making a contribution of 30 percent to the savings target of
at least EUR30 million a year. 'Our priority is to reorganize Gigaset in
such a way that we improve our competitive edge. We know that staff
cutbacks are painful for those who may be affected, but you can be sure
that we will tackle this difficult process with respect and a strong sense
of responsibility,' says Fränkl.
In international business, the current six sales regions are to be merged
into three. 'Reducing complexity and, above all, focusing on profitable
regions will put us in an even stronger position in international
business,' says Chief Sales Officer Maik Brockmann.
Gigaset AG, Munich, is a worldwide operating company in the
telecommunication and accessories sector. The company is a leading global
producer of cordless phones and Europe's market leader in DECT phones.
Internationally, the premium provider with 1,700 employees is represented
in more than 70 countries and is ranked in third place in its sector.
The Gigaset AG shares are traded in the TecDAX (Prime Standard) of the
Frankfurt Stock Exchange. Symbol: ISIN: DE0005156004.
You can find more information in the Internet at http://www.gigaset.ag
Contact:
Gigaset AG
Stefan Zuber
Corporate Communications
Phone: +49 (0)89 444456-600
E-mail: info.presse@gigaset.com
Kerstin Diebenbusch
Investor Relations
Phone: +49 (0)89 444456-937
E-mail: info@gigaset.com
End of Corporate News
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14.08.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Gigaset AG
HofmannstraÃe 61
81379 München
Germany
Phone: +89444456937
Fax: +89444456930
E-mail: kerstin.diebenbusch@gigaset.com
Internet: www.gigaset.com
ISIN: DE0005156004
WKN: 515600
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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181656 14.08.2012
DGAP-News: Gigaset AG: Gigaset firms up its adjustment plans to strengthen its competiveness
| Source: EQS Group AG