Global Eagle To Cut Workforce By Roughly 15%

As previously disclosed, Global Eagle Entertainment Inc. (ENT)​ has been implementing an operating expense savings initiative, which includes a global footprint consolidation, simplification of its management structure, IT programs that will increase efficiency and automation, and other operating expense reductions. In connection with this initiative, on February 5, 2019, the company committed to reducing its global workforce by approximately 15% and communicated this determination to its employees on February 20, 2019.

Image result for Global Eagle Entertainment

The changes to the company's workforce will vary by country, based on legal requirements and required consultations with works councils and other employee representatives, as appropriate. The company estimates that it will incur total expenses relating to the workforce reduction of approximately $4.5M, all of which represents cash expenditures relating to severance and transition-related expenses. Of this total amount, the company expects to record substantially all of it in the first quarter of 2019, with the remainder to follow in the second quarter of 2019 and the balance in the third quarter of 2019.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.