OSLO: Atea Denmark is undertaking a cost efficiency program which involves the reduction of 67 full time employees, effective from January 2020.
The program will result in severance costs of DKK 26 million, which will be recognized as a restructuring charge during the first quarter of 2020.
In connection with the cost efficiency program, management is currently reviewing extraordinary costs for asset writedowns and liability provisions related to its Danish operations. These extraordinary costs of up to DKK 25 million would also be recognized during the first quarter of 2020.
There will also be a change of Managing Director in Denmark as Morten Felding will be leaving Atea. “I want to say thank you to Morten Felding for his leadership in the years when Atea Denmark first faced severe challenges to its business and integrity, and in the following years when we had to reach new and higher standards to regain our customers’ trust,” commented Steinar Sønsteby, CEO of Atea Group.
As from today Kathrine Forsberg will be acting Managing Director of Atea Denmark. Forsberg has been employed as Senior Vice President in Atea Denmark since 2018, with responsibility for enterprise sales.
Atea Denmark had improved profitability in the fourth quarter of 2019, but the business recovery has taken longer and been slower than management’s expectations. The Atea Denmark business segment will report an EBIT of DKK 17 million in Q4 2019, compared with DKK 8 million last year.
Edited by Kazim Rizvi