VICTORIA, British Columbia--(BUSINESS WIRE)--Vecima Networks Inc. (VCM: TSX) today announced it has undertaken a workforce reorganization of approximately 12 percent to align teams and program investments with customers' needs while also enhancing operating efficiency. The resulting workforce reduction is expected to deliver annualized savings of approximately $17.5 million, starting in the second half of fiscal 2025. Vecima expects to record related reorganization costs of approximately $3.0 million in the second quarter of fiscal 2025.
“Employment adjustments are difficult but necessary to ensure we have a balanced foundation for growth,” said Sumit Kumar, Vecima President and CEO. “We appreciate the contributions of the people impacted by today’s announcement and those who will drive our Company forward.”
“We continue to see strong long-term demand for access network upgrades, and our total market assessment has not changed,” Mr. Kumar added. “Customers are coalescing around unified solutions and are focusing on next-generation cable and fiber access, representing significant opportunities for Vecima. We are aligning our investments in these areas in step with our customers’ timelines while supporting Vecima’s continued efficient and profitable growth.”
About Vecima Networks
Vecima Networks Inc. (TSX: VCM) is leading the global evolution to the multi-gigabit, content-rich networks of the future. Our talented people deliver future-ready software, services, and integrated platforms that power broadband and video streaming networks, monitor and manage transportation, and transform experiences in homes, businesses, and everywhere people connect. We help our customers evolve their networks with cloud-based solutions that deliver ground-breaking speed, superior video quality, and exciting new services to their subscribers. There is power in connectivity – it enables people, businesses, and communities to grow and thrive. Learn more at vecima.com.
Forward-Looking Statements
This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words “believes”, “may”, “plans”, “will”, “anticipates”, “intends”, “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such expressions.
Forward-looking information in this news release includes, but is not limited to, any statements respecting: the scope, timing, and anticipated impacts of the workforce reduction; estimated costs associated with the workforce reorganization; anticipated investments, plans, and market opportunities; and actions related to changes in general economic conditions. The forward-looking statements are based on the current expectations of the management of Vecima and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated.
A more complete discussion of the risks and uncertainties facing Vecima is disclosed under the heading “Risk Factors” in the Company’s Annual Information Form dated September 19, 2024, as well as the Company’s continuous disclosure filings with Canadian securities regulatory authorities available at www.sedarplus.ca. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events, or developments, except as required by law.
