IAR launches cost-savings program
IAR says that the company will be implementing a cost-saving program aimed at enhancing profitability, increasing operational efficiency, and creating opportunities for sustained growth.
The company details in a press release that the cost-saving program will be achieved through a combination of measures, including staff reductions, decreased consultancy costs, and lowered non-personnel-related expenses. The staff reductions will occur through natural attrition and employment terminations at IAR’s Cambridge office in the United Kingdom.
IAR proposes the removal of a total of 25 positions, including consultants, with no rehiring of natural attrition. This initiative is expected to result in estimated annual savings of approximately SEK 27 million (EUR 2.28 million), with full effect by the end of Q3 2023. Total restructuring costs, mainly relating to the staff reductions, are estimated to be a maximum of SEK 4 million (EUR 338,000), most of which will impact results for Q3 2023 as a one-time charge.
The remaining 26 employees in the development team in Cambridge will be closely aligned with the Uppsala development team in Sweden.
“The embedded solutions market has witnessed rapid and ongoing changes driven by updated regulations and legislation,” says Richard Lind, CEO at IAR in the press release. “Today’s announcement positions IAR to meet these shifts more effectively. By leveraging our strong foundation in safety and compliance, we are now integrating the security dimension further. These strategic actions will enable us to address better our customers’ needs for embedded safety, security, and compliance solutions”.
