StockMarketWire.com - Dialight is to cut around 130 jobs - 12% of the group's total workforce, excluding direct labour - to cut costs.

The roles expected to be made redundant span all of the group's countries of operation and consultation with employees has now begun.

The group says that as previously outlined at its interim results in July, it has experienced a downturn in profitability in the first half of 2015 due to operational inefficiencies and excess costs.

It adds: "We are therefore taking swift action to address these excess costs to improve profitability and better position Dialight in its key growth markets."

The redundancy programme will, on a run rate basis, reduce operating costs by more than £3.0m million per year. It will save more than £1.0 million in the current financial year, although this will be offset by cash costs of approximately £1.0 million.

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."




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