, June 26, 2015

Ordina announces cost-savings programme

Ordina today announces a cost-savings programme that will result in annual structural savings of around EUR 6 million. These measures are necessary to keep the results at the Dutch activities at an acceptable level, given that turnover from the public sector is under pressure. The savings programme will target both external and internal costs and process improvements. Ordina’s activities in Belgium and Luxembourg are performing well and are outside the scope of the savings programme.

The media reports and discussions about IT projects in the public sector have resulted in delays in the decision making on IT investments in the Netherlands. This has put pressure on Ordina’s turnover from the public sector. The public sector market is important to Ordina and is in a major state of flux. This has resulted in a change in demand for IT services.

Stépan Breedveld, CEO Ordina:
“It is important for us to intervene now and by doing so bolster our results. Ordina is also in a process of transition, as we want to adapt continuously to changing market conditions. Technological developments and new forms of cooperation require constant adaptation of working processes and the know-how Ordina has available. To remain up-to-date, we are accelerating changes to some competencies in line with new market demands. We regret that a number of our employees will be affected by the changes. We will, however, continue to invest in new areas of expertise to secure a healthy future for our company. In this context, we will continue our retraining and Young Professionals programmes.”

We will provide further information on the plans announced today during the presentation of our interim results.