Semcon carrying out restructuring and cost cutting scheme

Semcon carrying out restructuring and cost cutting scheme The market for IT and telecom services continued to be flat during Q3. Above all, Semcon in the northern Stockholm region has been hit by a serious fall in demand. Semcon must therefore adjust its resources, organisation and cost structure to take account of this. A major restructuring scheme has started. Negotiations have started with the relevant unions about giving notice to administrative staff and consultants in the IT and telecom sectors. Measures will be taken immediately to readapt the organisation to the current market situation and to secure future success. The aim of the cost cutting scheme is to save a minimum SEK 50 million annually "We're now facing the most lacklustre trend in the IT and telecom sectors we've ever seen," comments Hans Johansson, Semcon's CEO. "Our organisation has always been geared towards growth and as the scenario is now completely different we are concentrating on the areas where the market is good. Demand from the Vehicle and Medical sectors continues to be strong. Our projects with product and production development are by their very nature, long-term," he explains. The deteriorating IT and telecom sectors, coupled with the measures taken, will be charged to this year's results. Detailed information about the restructuring scheme will be announced in combination with Semcon's Q3 report, published on 24 October. For further information, please contact: Hans Johansson, CEO tel: +46 31 721 03 05, mobile: +46 (0)705 91 43 34 Bengt Nilsson, CFO, tel: + 46 31 721 03 11, mobile: +46 (0)704 47 28 68 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/15/20011015BIT00080/bit0002.doc http://www.waymaker.net/bitonline/2001/10/15/20011015BIT00080/bit0002.pdf