COLORADO SPRINGS, Colo.,
Oct. 18, 2016 /PRNewswire/ --
Vectrus, Inc. (NYSE: VEC), announced a corporate reduction in force
and a realignment of effort resulting in the elimination of 64
positions at the Colorado Springs
headquarters. The corporate realignment, building on organizational
actions initiated earlier this year, will also place critical
business functions closer to both customers and contracts. The
reductions taken today are in addition to 18 open or unfilled
positions the company eliminated throughout the year.
"The reduction in staffing, while difficult, is a necessary
action for Vectrus in order to maintain its competitive position in
the marketplace," said Ken Hunzeker, CEO and president at Vectrus.
"The corporate realignment will build on and strengthen the
organizational efforts initiated earlier this year by placing
certain business functions closer to the associated service
offering, to improve our ability to secure future contract
awards."
"It is important to note, these reductions impact neither the
services we are delivering to our customers, nor our performance on
current contracts," said Hunzeker. "Furthermore, we plan to at a
minimum maintain our investment and spending in business
development and other functions that drive revenue."
During the past year, Vectrus has worked to structure the
corporation to better align solutions to customer needs. These
efforts have focused around the operations centers created earlier
this year – one in Reston, Va., supporting the IT and Network
Communication service offering, and one in Colorado Springs supporting the Infrastructure
Asset Management (Infrastructure) and Logistics and Supply Chain
Management (Logistics) service offerings. One result of the
realignment has been the consolidation of the Infrastructure and
Logistics service offerings because they have similar capabilities.
The resulting service offering is called Facility and Logistics
Services.
The financial implication of these efforts will result in an
approximate $2 million severance
expense in the fourth quarter of 2016 with an anticipated annual
savings of $8 million related to the
action taken today. The company expects to realize additional
savings in 2017 through reductions taken on non-labor discretionary
expenditures.
"These actions reflect two initiatives. First, we realigned
certain functions in order to strengthen the organizational changes
we initiated earlier in the year," said Matt Klein, chief financial
officer at Vectrus. "And second, because we continuously evaluate
our cost structure, the reductions in headcount proactively address
anticipated reductions in revenue on certain programs."
About Vectrus
Vectrus is a leading, global government services company with a
history in the services market that dates back more than 70 years.
The company provides facility and logistics services, and
information technology and network communication services to U.S.
government customers around the world. Vectrus is differentiated by
operational excellence, superior program performance, a history of
long-term customer relationships, and a strong commitment to their
mission success. Vectrus is headquartered in Colorado Springs, Colo., and includes about
6,000 employees spanning 132 locations in 18 countries. In 2015,
Vectrus generated sales of $1.2
billion. For more information, visit our website at
www.vectrus.com or connect with us on Facebook, Twitter, LinkedIn,
and YouTube.
Contacts:
Media
George Rhynedance
(719) 637-4182
george.rhynedance@vectrus.com
Investors
Mike Smith
(719) 637-5773
michael.smith@vectrus.com
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SOURCE Vectrus