SNC-Lavalin’s “right-sizing” will affect 1,000 Canadian employees
Following its announcement last week about restructuring, SNC-Lavalin says it can't give more specific details other than that 1,000 Canadian employees will be affected.
Following its announcement last week about restructuring, SNC-Lavalin says it can’t give more specific details other than that 1,000 Canadian employees will be affected.
On November 6, Canada’s largest engineering and construction firm announced that it has plans to “scale back certain underperforming activities” over the next 18 months. It will adjust, consolidate and streamline its operations and corporate structure to improve efficiency. The company plans to reduce its global workforce by 4,000 people, or 9 per cent of its total.
The company attributed its decision partly to a global slowdown in the mining sector, that “has created a ripple effect through other industries.” It is also affected by slowing economies in Brazil, Russia, India and China, or the “BRIC” countries.
Robert G. Card, president and chief executive officer of the company, concluded: “We must … improve our agility and client focus in order to capitalize on the most promising opportunities in key growth markets.”
The restructuring and “right-sizing” is expected to result in $200 million charges and achieve operational efficiencies beginning in 2015.
The company revised its 2014 earnings per share “guidance range” for the third quarter from $0.40 to $0.55.
To read the full press release, click here.
To read the company’s third quarter results, click here.