KIT digital has announced it is making “significant workforce reductions” as the company looks to bring down its expenditure by $40 million (€30.5 million).
In a statement KIT said the reductions would streamline its corporate functions, while maintaining high standards of customer service and technical delivery. The majority of expense reductions are said to be in non-core areas and general and administrative posts.
The move follows last month’s installation of activist investor Peter Heiland as interim CEO.
“By accelerating the integration of the company, we will be able to enhance our product offerings, improve time-to-market efficiency, and bring the business to a place of financial strength“ said Heiland. “While we have completed some non-core divestures and reduced the non essential support infrastructure, we are preserving all of the strategic initiatives surrounding our core competencies as we believe they will drive significant growth.”
The restructuring, first announced in May 2012, will see a net reduction of 300 employees representing 22% of the company headcount.
It is expected the redundancies will commence in the third quarter of 2012 and will be completed by the end of calendar year 2012.