Electromagnetic Geoservices ASA (EMGS) announce several changes to the organisation to reduce the Company's cost base and increase efficiency in line with the level of expected activity. The Company will implement several structural changes to the organisation, including centralising and / or merging departments, in addition to other measures to reduce cost. These changes will result in a reduction of the global headcount by about 15%.
The Company expects to book restructuring charges of approximately USD 0.7 million in the second quarter of 2016. The additional cost measures will be implemented immediately and yield effects gradually, and are expected to further reduce the annual cost base by approximately USD 10 million.
"Whilst the interest in our technology continues to be high, our customers are delaying, cancelling or reducing work scopes, resulting in a lower demand for our services. Therefore, we continue to focus on cost control and cash flow, and implement changes to increase the efficiency of the organisation," says Christiaan Vermeijden, CEO of EMGS.