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Swedish staffing firm Proffice (PROEB: SS) announced that commencing 1 June 2014, the company is implementing a change in its organisation to create a more simple and clear structure. The group management is being strengthened by bringing the heads of the group's four largest business units; Proffice Sweden, Proffice Industrial & Logistics Sweden, Dfind Nordic and Proffice Nordic, and the Head of Group Sales into the Group’s management team.
The organisational change is in line with Proffice’s fundamental strategy, which revolves around product leadership through specialisation. As part of this, the company is establishing Dfind Science & Engineering by merging Proffice Life Science and Dfind Engineering and the combined entity will be further developed with new services and in new markets.
Henrik Höjsgaard commented: "After three months as President and CEO, I can observe that Proffice is a well-run and profitable company with great potential, however, turnover is not growing in line with the market. Therefore we need to simplify the organisation and strengthen the group management in order to inject more vitality and energy into the entire organisation, especially within sales.”
The one-off cost for the organisational change will be in the region of between SEK 10 million (€1.1 million) to SEK 15 million (€1.7 million), and will affect earnings during the second and third quarters of 2014. From 2015, annual expected savings are expected to be between SEK 5 million (€551,253) and SEK 10 million (€1.1 million). In addition, Proffice will invest a further SEK 20 million (€2.2 million) to SEK 25 million (€2.8 million) per annum in the group's infrastructure and IT-system during 2014 and 2015.
"A stable, upgraded system support will mean that we can utilise the group's overall resources more effectively, enabling us to lay the foundations for, among other things, a more effective sales process,” Mr Höjsgaard added.
The measures being implemented by Proffice are intended to improve the organisation’s capacity to react more quickly to labour market changes.