ARCpoint to implement headcount reduction on back of reduced revenues
Klaus Vedfelt
- ARCpoint (TSXV:ARC:CA) said on Wednesday it is implementing a headcount reduction from Apr. 1, which represents ~30% of the company's salary costs.
- The move comes on the back of reduced revenues.
- A majority of the layoffs will take place at the upper management and executive levels.
- COO Dano Jukanovich will step down from the post, effective Apr. 1.
- The franchise system and healthcare company said it is realigning its business units and operations for cost savings.
- ARCpoint expects the layoffs to represent cost savings of over $200K in 2023, after accounting for severance costs and any needed new hires.
- Also, annualized savings of over $800K are anticipated going forward.
- ARCpoint said that after undertaking an audit of the operations, the company has identified operational cost-saving measures representing ~20% of the current operating costs.
- For Q4, the company expects to report revenue of ~$1.3M, down from $5.8M a year ago. The 2021 results had benefitted from the COVID-related high complexity PCR testing and low complexity rapid tests volumes
- For FY22, revenue should be about $10.9M, compared to $19.2M a year ago.
- Source: Press Release