Dialight’s reveals global cost reduction plan, cuts headcount
Dialight experienced a downturn in profitability in the first half of 2015 due to operational inefficiencies and excess costs. In response the company is taking swift action to address the excess costs to improve profitability and improve Dialight’s position in the company’s key growth markets.
The redundancy programme will, on a run rate basis, reduce operating costs by more than £3.0m million per year and aims to save more than £1 million in the current financial year, although this will be offset by cash costs of approximately £1.0m.
"I believe that we have a huge opportunity ahead and Dialight is well positioned to capture significant value in our rapidly growing markets. However, as sales continue to grow, the business has taken on excess costs which have resulted in our poor first half performance," said Michael Sutsko, Dialight’s Group Chief Executive. "We firmly believe that our team can deliver continued growth with future resources being added in line with our strategy. This action is a key part of our plans to transform our business in the short term whilst realigning to deliver profitable growth going forward. As previously indicated, we will report back with the findings of our strategic review in October."
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