Dialight to cut 12% of workforce as it looks to slash costs

7th Aug 2015 11:03

(ShareCast News) - Dialight will cut around 12% of its workforce as part of a plan to address excess costs, improve profitability and better position the company in its key growth markets.The lighting company said in its interim results in July that it had experienced a downturn in profitability in the first half of the year due to operational inefficiencies and excess costs.The redundancy programme will reduce operating costs by more than £3m per year on a run-rate basis and will save more than £1m in the current financial year, although this will be offset by cash costs of around £1m.Chief executive Michael Sutsko said: "I believe that we have a huge opportunity ahead and Dialight is well positioned to capture significant value in our rapidly growing markets. However, as sales continue to grow, the business has taken on excess costs which have resulted in our poor first half performance."We firmly believe that our team can deliver continued growth with future resources being added in line with our strategy. This action is a key part of our plans to transform our business in the short term whilst realigning to deliver profitable growth going forward. As previously indicated, we will report back with the findings of our strategic review in October."At 11:09, Dialight shares were down 0.9% at 545p.