Nera SatCom AS, a wholly-owned subsidiary of Nera ASA, will reduce its staff by up to 50 man-years by the end of 1st quarter 2005. The cost reduction measures are intended to help the company maintain its leading position in satellite communication and return to profitability. The plan is to reduce Nera SatCom’s cost base by NOK 70 million per year. The workforce reductions will be implemented at all levels and in all departments.
“These initiatives are absolutely necessary in order to maintain Nera SatCom’s future competitiveness. Consequences for individual employees are highly regrettable, but unfortunately unavoidable, but we will handle these processes in a professional manner”, says Terje Ask-Henriksen, president of Nera SatCom.
The initiatives are prompted by a need to improve profitability during a period of comprehensive change in Nera SatCom’s markets. Specifically, Nera does not expect the land earth station market to recover, but rather that demand for these high margin products will weaken further. Moreover, the company anticipates a stable development in the terminal markets, while the broadband satellite segment is expected to keep growing.
