Seeing Machines (AIM:SEE ) has implemented a range structural changes and a number of cost saving measures to counter the immediate effects of the current global pandemic.
The advanced computer vision technology firm said it has restructured operations to improve its focus on profit generation across its three business units - automotive, fleet/offroad and aviation.
It will implement significant improvements to engineering and technology management to ‘improve the balance between innovation and delivery’, which will result in a more targeted R&D approach, it said.
Corporate services functions will also be restructured to enable better collaboration across the organisation ‘and facilitate an enhanced focus on profitable growth.’
The advanced computer vision technology company said many of these changes will permanently reduce operating costs and position the business for profitable growth as demand returns post the disruption caused by the COVID-19 pandemic.
The group also announced a number of temporary cost reduction initiatives, including the reduction of the CEO’s salary by 20% and defer any bonus payable for 12 months, while reducing Chair and Non-executive director fees by 30% and 20% respectively.
The group has also introduced a companywide four-day working week to reduce overall staff salary costs by 20%.
Shares in Seeing Machines were trading 6.60% lower at 2.475p on Tuesday morning.
At this time, the Australian Federal Government has introduced a robust economic stimulus package designed to assist businesses through this downturn.
Seeing Machines has successfully qualified for its JobKeeper program which provides a wage subsidy of A$1,500 per fortnight per qualifying employee until late September 2020.
“The new organisational structure will refocus our business and enable us to deliver better results faster,” said Paul McGlone, CEO of Seeing Machines.
The initiatives are expected to strengthen the group’s overall balance sheet by saving business costs of around A$12m over the remainder of the 2020 and 2021 financial years.
McGlone described the restructuring process as “a difficult but necessary step” to ensure the financial strength of the business and, in turn, improve shareholder returns.
He added that post-pandemic, “Seeing Machines will be extremely well positioned in order to leverage its market leading position to enhance safety across our transport sectors."
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