Spectrum Group to downsize workforce
Regional VAD could layoff up to 50% of total workforce under plans to restructure operations
Spectrum Group, the holding company for Comguard, F1 Infotech, Psilog and Spectrum Training, has revealed that it has started the process of restructuring its operations and could layoff up to 50% of its personnel in a strategic saving plan over the next two months.
The regional VAD added that the restructuring will see the company focus on its core business and ensure all its business units are profitable.
The move to streamline its operations comes barely two weeks after the company allayed fears that its specialist security solutions VAD, Comguard had exited the market.
Ajay Singh Chauhan, group CEO at Spectrum Group, confirmed the development and said over the past two years, the business was profitable and prompted the company to invest in new ventures. "Given the current market conditions in the Middle East, some of the new ventures didn't go according to plan and we have taken the hard route to drastically downsize our workforce," Chauhan said.
He said the restructuring exercise will happen over the next two months and the company is looking to reduce personnel by between 30 and 50%.
Under the new structure, Chauhan said the company has decided to focus more on Comguard, Psilog and Spectrum Training. "These three subsidiaries are the core focus and most profitable business units within the group," he stated. "We want to ensure sustainable growth hence it was necessary to streamline the business and pay more focus on divisions that are profitable."
He said as part of the changes, Spectrum Group has hired a new chief financial office, who will guide the company as it readies itself for future growth.