Company will eliminate 4,000 workers, or about nine per cent of its employees globally, over next 18 months
MONTREAL—SNC-Lavalin Group Inc. has warned of downsizing over the next 18 months that will see nine per cent of its workforce cut, though the engineering giant said much of the focus will be outside of Canada as it continues to restructure operations.
In an update to its five-year strategic plan, initiated two years ago, the Montreal-based firm said it will “take a number of steps to restructure and right-size certain areas of its business” as part of the strategic plan, including the elimination of about 4,000 jobs.
Part of that, according to SNC-Lavalin, includes executing “plans to scale back certain under-performing activities and adjust, consolidate and streamline some of its operations and corporate structure to improve efficiency, effectiveness and competitive positioning.”
The company conceded that some of the operational restructuring will affect its Canadian operations, but said roughly three-quarters of the plan will impact operations outside the country.
“We are taking definitive action to reshape our platform and enhance our ability to deliver outstanding services to clients, long-term value for our stakeholders and exciting opportunities for our team,” SNC-Lavalin president and chief executive Robert Card said in a statement.
“As we prepared for the next phase of our plan, we took a hard look at our structure, portfolio and pipeline of opportunities and decided that further action is required to align our expertise and internal resources with the realities of our markets and client needs.”
Card hinted at a restructuring in its mining activities, particularly in Brazil, Russia, India and China, know as BRIC nations, as the sector continues to feel the residual impact of the global economic slowdown.
The restructuring is expected to result in $200 million in charges over the next 18 months, according to SNC-Lavalin, while delivering approximately $100 million in annual operational efficiencies beginning next year.