Colt to take up to €33 million restructuring charge in Q4 2012

European provider Colt has said that it will take a charge of up to €33 million in the fourth quarter of 2012 in relation to a restructuring programme.

The company restructured its business into three units in 2011 and expects to save around €44 million per year as a result.

A third of this sum will be invested in new jobs, providing a net recurring annual cost saving of approximately €27 million by 2014, according to Colt.

Colt said its investments in managed network and IT services were yielding increased bookings, and as a result it required an accelerated skills set to support this growth.

The company plans to continue its business transformation strategy to become a new breed of service provider, “the information delivery platform”.

This restructuring will include plans to alter its skill base to support its solutions business including ICT resources, consolidate its resources through investments in system and process improvement and to leverage its share service centres in Barcelona, India and Romania more effectively.

“Our performance remains on track. Given the economic backdrop, we believe now is the right time to accelerate the transformation of our cost and skills base. This will result in Colt becoming a more efficient business, and one that is better positioned to execute on its strategy,” said Rakesh Bhasin, CEO at Colt.

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