Montreal, PQ -- Following its March 21st revenue shortfall announcement, BCE Emergis has announced it will lay off...
April 8, 2002
Montreal, PQ — Following its March 21st revenue shortfall announcement, BCE Emergis has announced it will lay off 550 employees and discontinue “non-core” services.
The company plans to focus on major growth opportunities (bill presentment services, payment solutions and claims processing). Brian Edwards, Vice Chairman and CEO of BCE Emergis, says they want to “streamline our service offering and cost structure and drive our recurring revenue growth.”
The plan includes an overall reduction in personnel of approximately 20 per cent. The company has also identified non-core services, which it plans to discontinue. These non-core services represented 40 per cent of its total number of services, and approximately 5 per cent (or $30-$35 million) of its annual revenue in 2001.
As previously announced, the company expects first quarter total revenue to be in the $128-$138 million range, EBITDA in the negative $17-$22 million range, and a net loss of between $25 million and $30 million.
For 2002, the company is targeting total revenue between $575 million and $625 million with non-recurring revenue at approximately 10 per cent of total revenue. In 2003, corporate objectives are to grow total revenue by approximately 15-20 per cent.