Vecima Networks says it has moved ahead with a workforce reduction that will impact 12% of its employees. The resulting move will deliver annual savings of about $17 million Canadian dollars. #pressrelease
December 9, 2024
Vecima Networks Inc. (VCM: TSX) today announced it has undertaken a workforce reorganization of approximately 12 percent to align teams and program investments with customers' needs while also enhancing operating efficiency. The resulting workforce reduction is expected to deliver annualized savings of approximately $17.5 million, starting in the second half of fiscal 2025. Vecima expects to record related reorganization costs of approximately $3.0 million in the second quarter of fiscal 2025.
"Employment adjustments are difficult but necessary to ensure we have a balanced foundation for growth," said Sumit Kumar, Vecima President and CEO. "We appreciate the contributions of the people impacted by today's announcement and those who will drive our Company forward."
"We continue to see strong long-term demand for access network upgrades, and our total market assessment has not changed," Mr. Kumar added. "Customers are coalescing around unified solutions and are focusing on next-generation cable and fiber access, representing significant opportunities for Vecima. We are aligning our investments in these areas in step with our customers' timelines while supporting Vecima's continued efficient and profitable growth."
Read the full press release here.
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