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SNC-Lavalin cutting 4,000 jobs globally


November 6, 2014
By Rock to Road

November 6, 2014, Montreal, Que. – SNC-Lavalin has announced
that it will cut its global workforce by 4,000 jobs over the next 18 months in
an effort to restructure its operations.

November 6, 2014, Montreal, Que. – SNC-Lavalin has announced
that it will cut its global workforce by 4,000 jobs over the next 18 months in
an effort to restructure its operations.

 

According to a company statement: “Over the next 18
months, SNC-Lavalin plans to scale back certain underperforming activities and
adjust, consolidate and streamline some of its operations and corporate
structure to improve efficiency, effectiveness and competitive positioning.
While some of the restructuring and right-sizing will affect the Company’s
Canadian operations, approximately three-quarters of the plan is directed at
activities outside of Canada, in sectors and end markets that face a more
difficult operating environment.

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This restructuring and right-sizing,
which is expected to result in $200 million (after taxes) in charges over the
next 18 months, aims to deliver approximately $100 million (after taxes) in
annual operational efficiencies beginning in 2015, and will require a reduction
of the Company’s global workforce of about 4,000, or 9 percent, over this
period. Simultaneously, the Company is expected to record approximately $100 million
(after taxes) in non-cash charges over this time. The Company recognizes the
impact of its decision to reduce its workforce, but notes that the
restructuring and right-sizing actions are intended to ensure that
SNC-Lavalin’s global employee base has a stronger platform from which to grow,
as well as access to an increasing number of professional opportunities.”

 

No official job cuts in Canada have
been announced at this time.