Business restructure and COVID measures
Seeing Machines has implemented a business reconstruction alongside a range of temporary costs saving measures in response to the COVID-19 pandemic. The measures being put in place are permanent structural changes and temporary cost savings. Seeing Machines has successfully reduced discretionary costs and introduced a number of short-term measures to specifically mitigate the impact of the pandemic. These include the following items, which will be in place for an initial six months:
a. CEO salary reduction of 20% and deferral of any bonus payable for 12 months;
b. Chair fees reduced by 30%;
c. Non-executive director fees reduced by 20%; and
d. Introduction of a four-day working week and consequent 20% salary reduction for staff
These initiatives are expected to result in significant ongoing cost savings for the business, estimated at approximately A$12m over the remainder of FY2020 and FY2021, thereby helping preserve Seeing Machine’s balance sheet strength.
Paul McGlone, CEO at Seeing Machines, has commented that ““The restructuring and cost-saving process has been a difficult but necessary step in our journey to ensure the financial strength of the business and, in turn, improve shareholder returns.”
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