EDB Business Partner to axe 240 staff

Source: EDB Business Partner

EDB Business Partner intends, as announced at its Q2 presentation on 18 July 2006, to implement rationalisation measures to ensure the group's competitiveness and continuing good profitability.

The measures represent an overall reduction in headcount of around 240, and will in the main be implemented in Q4 2006. The IT Operations business area's headcount will be reduced by around 175, with reductions in other units totalling around 65 employees. The measures will incur a one-off cost of approximately NOK 140 million, of which NOK 15-20 million relates to writing down assets affected by measures to consolidate infrastructure. As previously announced, the company expects to recognise the majority of the costs associated with the restructuring in its Q3 2006 accounts. The rationalisation measures will reduce annual personnel costs by around NOK 100 million.

Employees affected by these measures will be offered redundancy packages in excess of normal salary for their notice periods. The amounts involved will vary depending on age and seniority. In addition, all affected employees will be offered career guidance and other personal support.

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