Niscayah Group AB (publ.) launches a restructuring programme

Niscayah launches a restructuring programme during the fourth quarter 2008. The restructuring mainly consist of a downsizing of employees by approximately 600 in several of the countries where Niscayah operates, whereof approximately 120 in Sweden. Customary co-determination negotiations are on-going. Restructuring costs for the programme of approximately MSEK 270 will be taken during the fourth quarter 2008. These measures are estimated to result in yearly cost savings of approximately MSEK 315 and are expected to have full effect from second half-year 2009.

These measures are part of the company’s strategy to increase sales of services as well as to drive profitable growth. The restructuring programme is intended to decrease selling and administrative expenses and improve profitability, particularly as regards to that part of the operations covering implementation. Furthermore the purpose of the restructuring programme is to prepare for a decreasing demand, particularly within implementation.

In a comment to the restructuring programme, Juan Vallejo, CEO of Niscayah, says:

” Our aim is to enter 2009 with the right formation for our strategy to increase sales of our services: System Management and System Operation. Furthermore the current state of the market has caused us to review all costs in order to encounter a tougher market.”