Sinch provides further details about its cost reduction program
Stockholm, Sweden – October 14, 2022 – Sinch AB (publ), a global leader in cloud communications and mobile customer engagement, today provides further details about the expected savings and costs related to its previously communicated cost reduction program.
The program was announced in connection with the results for the second quarter 2022 and launched to safeguard financial performance and ensure that Sinch meets the financial target to grow Adjusted EBITDA per share by 20 percent per year.
The objective of the program is to reduce operating expenses in the Messaging segment and central functions and achieve total gross savings of at least SEK 300 million on an annual basis.
Gains from the program will be realized gradually. A third of the savings are expected to be achieved from Q1 2023 and the full effect of the program is expected to be realized from Q3 2023.
Savings will be achieved through a combination of reduced consultancy costs, lowered non-personnel related expenses as well as staff reductions. Staff reductions will materialize both through natural attrition and through notices of employment termination in several geographical locations. All in all, some 150 people are given notice.
Total restructuring costs, mainly relating to the staff reductions, are estimated to around SEK 120 million, most of which will impact results for the fourth quarter as a one-time charge.
Please also see the separate press release regarding changes in the management team and reorganization of Business Unit Applications, which is published alongside this release.
Sinch is currently in the silent period preceding the third quarter report on November 2. Questions will therefore be answered at the webcast which will take place November 2 at 14.00 CET.
For further information, please contact
Ola Elmeland
Investor Relations Director
Mobile: +46 721 43 34 59
E-mail: investors@sinch.com
Thomas Heath
Chief Strategy Officer & Head of Investor Relations
Mobile: +46 722 45 50 55
E-mail: investors@sinch.com
About Sinch
Sinch’s leading cloud communications platform lets businesses reach everyone on the planet, in seconds or less, through mobile messaging, email, voice and video. More than 150,000 businesses, including many of the world’s largest companies and mobile operators, use Sinch’s advanced technology platform to engage with their customers. Sinch has been profitable and fast-growing since its foundation in 2008. It is headquartered in Stockholm, Sweden, and has local presence in more than 60 countries. Shares are traded at NASDAQ Stockholm: XSTO:SINCH. Visit us at sinch.com.
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