Ordina NV to cut 350 jobs
Dutch IT services firm Ordina NV plans to slash 350 jobs, it said on Thursday, accelerating a cost-cutting drive as it sought a buyer for its loss-making business process outsourcing (BPO) activities.
The mid-cap firm, which trimmed 2008 margin and revenue forecasts last month, said it expected the layoffs to reduce costs from 2010 onwards by 25 million euros ($35 million) a year, more than doubling a target of 10 million euros it had announced in August.
A declining market was hitting demand for its services, Ordina said, and the job cuts would take effect next year, when they should reduce costs by about 15 million euros.
In November, the company said its trading environment had worsened significantly and cut its full-year revenue forecast to 690 million euros from 700-720 million, sending its shares to six-year lows.
Ordina also cut its earnings before interest, taxes and amortisation (EBITA) margin to between 5 percent and 6 percent from a 7-8 percent range.
From Reuters
