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 user 2003-11-06 at 9:48:00 am Views: 90
  • #8348
    Danka To Cut Hundreds Of Jobs Worldwide
    Danka Business Systems will cut several hundred jobs worldwide initially and more later in a cost-reduction plan expected to save $30 million annually, its chairman and chief executive, Lang Lowrey, said Tuesday.

    The London- and St. Petersburg- based office- services distributor will begin reducing jobs in the United States and its overseas operations this financial quarter, Lowrey said in a conference call to analysts and shareholders.

    The company said it would disclose details of the job reductions in four to six weeks, after the board approves a long-range plan.

    Danka also will consolidate back- office functions in the United States, primarily because it has completed the much-delayed implementation of its Oracle information technology system that will place all of its employees, vendors and customers on the same network. And it plans to vacate some of its real estate.

    Having completed consolidation of the St. Petersburg headquarters campus and the Oracle implementation, said Mark Wolfinger, Danka’s chief financial officer, the company will turn to reducing “far too high” selling, general and administrative expenses.

    The board has approved the initial phase of the plan expected to save $11 million annually, and some job reductions have begun, Lowrey said. He did not specify where cuts have been made.

    Danka on Tuesday reported a $22 million loss, or 35 cents a share, for the second quarter ended Sept. 30. That included a $20.6 million write- off for debt issuance costs on a former line of credit and $4.7 million payouts in dividends and accretion on shares. That compares with a year-ago loss of $2.7 million, or 4 cents a share, including dividend payments.

    Danka employs about 8,700 worldwide and more than 500 in St. Petersburg.