After seven straight quarterly earnings drops, security services group Securitas has decided to take a cost-cutting drive which would see and merger of its two divisions and nearly 400 job cuts.
"A cost-savings program has been initiated at Security Services North America and at Security Services Europe," the company said in a statement. "The Mobile and Monitoring divisions and the Security Services Europe division will be merged to improve the coordination and speed of the technology implementation."
As a result of its proposed major of two divisions, the company expects about 400 people to lose their job, which will be "mainly higher and middle level managers in Europe and North America," Securitas' Communications Director Gisela Lindstrand told Reuters.
The world's second-largest security firm after British-Danish G4S expects to resurrect itself from the recent debt crisis in Europe and is eying a an annual cost savings of $45.18 million (300 million Swedish crowns) in 2013.
"Restructuring costs are currently estimated to approximately 360 million crowns and will be recognized for in the fourth quarter of 2012," the company said.
The company undertook a slight reshuffle at the management level and the statement said, "Until further notice, the President and CEO of Securitas, Alf Göransson will assume responsibility for the merger between the Security Services Europe division and the Mobile and Monitoring divisions. Erik-Jan Jansen has been appointed COO, and Aimé Lyagre CTO (Chief Technology Officer) of the new European division. Bart Adam has been appointed CFO of Securitas AB."
