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Cost Reduction Program at Leica Geosystems

Leica Geosystems has announced that it had launched a formal cost reduction initiative designed to strengthen the company in advance of an economic recovery. This program is intended to respond to the impact of the weak international economic situation through capacity adjustments, efficiency improvements, and leverage of internal business synergies. The Company stated that this program would result in an additional total worldwide reduction of 150 of its total of 2820 positions over the next six months. Under the project name “Fit ? together”, the comprehensive cost reduction program will address a number of issues, the ultimate objective being to strengthen the competitiveness and market position of the Company. In addition to capacity adaptations through workforce reductions, the Company will focus on realizing synergies from the integration of its acquisitions in 2001, as well as improving its overall business processes. The Company emphasized that the program is not intended to simply make quick reductions in costs, but rather, to realize lasting and strategic improvements in its cost structure through an optimized fit of all elements in the Company’s value chain, through to the customer.