To cut staff, operating costs for a more streamline operation
Gaithersburg, MD January 7, 2004 In a bid to focus more on its data synchronization services, B2B e-commerce network Global eXchange Services (GXS) Inc. has announced a restructuring to streamline its operations while reducing operating costs and staff.
The restructuring involves the reduction of approximately 5 percent of Global eXchange Services' 1,500 employees worldwide, a similar percentage reduction in contractors and an approximately 30 percent reduction in utilized office space at the company's Gaithersburg, Md., headquarters.
The restructuring and related charges of approximately $20 million will be taken against results for the fourth quarter of 2003. The charges will consist of severance and related costs, and costs associated with the closing of facility space.
The estimated amount of the charge to be recorded is net of amounts the company expects to receive from subleasing vacated space at its headquarters.
"We're committed to applying our resources to capitalize upon the most compelling challenges our customers and prospects face throughout their extended supply chains," said Gary Greenfield, GXS' president and CEO. "That requires making some difficult but necessary changes to ensure that we operate with maximum efficiency while continuing to deliver high quality products and services."