Dimension strengthens action program
Dimension strengthens action program To adapt operations to the gradual deterioration in the market in the last quarter, Dimension's management has decided to strengthen the structural measures it began to implement in April. The new measures will reduce costs by an additional SEK 65 million on an annual basis, primarily through the termination of approximately 70 employees. At the same time, the organizational structure is being adapted in order to increase efficiency. The aim of the program is to reduce the Group's costs in the short term, while retaining opportunities for long-term profitability. The actions that have been adopted pertain to units and segments that have developed weakly in the current market. Personnel in these units are being adapted to today's business volumes. Successful areas of operation are thereby being given improved opportunities to develop. The actions are expected to generate cost savings of approximately SEK 65 million a year, with a full impact as of July 1, 2002. The restructuring costs due to these actions are estimated at SEK 28 million and will be charged in their entirety against the second quarter. "The IT market has further weakened this quarter and the deals being done are taking a long time to finalize," says Sven Uthorn, Managing Director of Dimension AB. "Although we are convinced the market will recover, we see no clear signs of an improvement in the short term. This has made it necessary to intensify efforts to adapt the Dimension Group's organization and costs to the conditions we are currently facing." For further information, please contact: Sven Uthorn, Managing Director, Dimension AB, phone +46 8 5058 3000, direct +46 8 5058 3003, e-mail sven.uthorn@dimension.se ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/06/19/20020619BIT00130/wkr0001.doc http://www.waymaker.net/bitonline/2002/06/19/20020619BIT00130/wkr0002.pdf