Bunnik, the Netherlands, 30 September 2020 - Royal BAM Group nv announces a major restructuring programme in order to mitigate lower revenue caused by Covid-19 and selective tendering.
BAM expects this programme to result in cost savings of €100 million annually. The majority of savings will come from headcount reductions.
Subject to the outcome of the discussions with works councils and trades unions, BAM expects to implement the programme in the next six months, leading to significant savings already in 2021.
'Given the impact of the Covid-19 pandemic and the disappointing results over the first half year, we are taking decisive action to structurally improve our profitability', says Ruud Joosten, CEO since 1 September 2020. 'Although this is a painful decision for employees concerned, it is a necessary step in order to improve BAM's financial performance. At the same time, we are defining our new strategic agenda in order to create more value for our shareholders and solid prospects for all our stakeholders, including our employees.'
BAM will publish a trading update for the first nine months of 2020 on Thursday 5 November 2020.
Royal BAM Group NV published this content on 30 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 September 2020 06:09:03 UTC