Sykes (SYKE) to Exit Certain Markets, May Look to Sell Spanish Operations; to Rationalize 720-980 Jobs in EMEA, 1,200 in US
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In a Form 8-K, Sykes Enterprises (Nasdaq: SYKE) disclosed its Board approved and adopted a plan to seek to exit certain non-strategic markets and delivery geographies, including South Africa and Ireland, and rationalize some capacity in the Netherlands.
The plan will rationalize about 720-980 positions in EMEA and affect about 410-550 employees. Cost savings will total about $4.4-$5.4 million annually.
In addition to the actions in the EMEA region, as part of an on-going effort to streamline excess capacity related to the integration of the ICT acquisition and align it with the needs of the market, we plan to rationalize approximately 1,200 seats in the U.S.
Separately, upon the conclusion of a strategic review, the Finance Committee authorized management to pursue the sale of our Spanish operations. Management concluded the operations were no longer consistent with the strategic direction.
The plan will rationalize about 720-980 positions in EMEA and affect about 410-550 employees. Cost savings will total about $4.4-$5.4 million annually.
In addition to the actions in the EMEA region, as part of an on-going effort to streamline excess capacity related to the integration of the ICT acquisition and align it with the needs of the market, we plan to rationalize approximately 1,200 seats in the U.S.
Separately, upon the conclusion of a strategic review, the Finance Committee authorized management to pursue the sale of our Spanish operations. Management concluded the operations were no longer consistent with the strategic direction.
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