ISS to cut 100,000 jobs in bid to reduce complexity and risk

20th of December 2018
ISS to cut 100,000 jobs in bid to reduce complexity and risk

Danish cleaning group ISS is to cut its staff by 20 per cent and pull out of 13 countries in a bid to streamline operations.

As part of a two-year plan to focus on key markets, the Danish firm will reduce its customer base by 50 per cent and pare down its 490,000-strong staff to 390,000.

The company aims to increase its annual underlying revenue growth to between four and six per cent. ISS had previously projected underlying revenue growth of between 1.5 and 3.5 cent this year.

"This acceleration of our strategy will improve our offering for key account customers and deliver a stronger and more consistent financial performance for our shareholders," said chief executive Jeff Gravenhorst.

The 13 countries where the company will cease operations include the Czech Republic, Hungary, Slovakia, Slovenia, Romania and Estonia. ISS is aiming to reduce complexity and risk while also strengthening its delivery to key accounts.

The company hopes to raise up to US$381 million over the next two years by selling businesses. It will then invest in areas such as workplace, technical and catering services while around 25 per cent of the generated income will go to the shareholders via a buyback or special dividend.

ISS was founded as a cleaning business in Copenhagen in 1901 but since then it has grown to become one of the world's leading facility services companies with DKK 79.9 billion revenue in 2017. Key accounts brought in 56 per cent of its business during the first nine months of 2018.

 

 

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