Operating efficiency improvement plan in Agora
29-12-2008
Regulatory filing
The Management Board of Agora SA ("the Company") with its registered seat in Warsaw hereby informs that on December 29, 2008 they adopted the resolution on implementing operating efficiency improvement plan within the capital group where the Company is the parent entity, and within the Company itself ("the Group").
The aim of the plan is to adjust the Group to worse market conditions resulting from the expected economic slowdown and the financial crisis. Though strengthening of the existing businesses and executing on its growth objectives remain the Company's priorities, simultaneous improvement of its cost discipline is crucial to ensure its stability and financial security in adverse market conditions.
The aforementioned plan assumes the group lay-offs in the Company carried out in compliance with the provisions of the law dated March 13, 2003 on specific rules of terminating employment relationships due to causes unrelated to the employee. On December 29, 2008 the Management Board of the Company notified the Employment Office of the planned group lay-offs. According to the motion submitted to the Employment Office, the process of the group lay-offs will be carried out from January 1, 2009 until July 31, 2009.
The Company estimates that due to implementation of the operating efficiency improvement plan, exclusive of projected growth initiatives, the Group's total headcount reduction may concern up to 300 people, i.e. ca 7.5% of all employees within the Group as at November 30, 2008, and will take the form of group lay-offs in the Company.
As a result of the execution of the Group's operating efficiency improvement plan, including, inter alia, the group lay-offs in Agora SA., the companies of the Group will create provisions for the cost of the implementation of this plan in the total amount of about PLN 8.5 million, which will in full affect the consolidated financial results of the Group in the fourth quarter of 2008.
The Company will disclose estimated savings resulting from the Group's headcount decrease along with the publication of its 2008 fourth quarter results.
The Company will carry out this difficult and painful process in a well-thought-out manner and with utmost care for its employees. The intention of the Management Board is to provide the dismissed employees with, possible in this situation, security, hence the Company will offer them a range of protective and supportive programs.
