December 3 (SeeNews) - Finnish cyber-security services company Nixu Corporation said on Tuesday it plans to relocate part of its staff from the Dedicated Support Business Unit in Amsterdam to Romania as part of the restructuring of its business in the Netherlands.
The Dedicated Support unit has been providing digital identity support services from two locations: second level support from Amsterdam and first level from Romania.
However, while the demand for digital identity support services in connection with Nixu managed services has developed positively, the two-tiered delivery mode in different locations has proven ineffective, the company said in a press release..
Therefore, it has now decided to restructure the Dedicated Support Business Unit to focus solely on the Romanian operations and be structured as an internal Nixu Service Center, which will continue developing and delivering back-office support capabilities for the whole Nixu Group.
The company said that it will initiate a workforce reduction plan for those employees within Nixu Dedicated Support Business Unit who cannot transfer to Romania.
The one-time costs of this restructuring are estimated at a maximum of 500,000 euro ($553,531), with the costs to be incurred during financial year 2019.
"Restructuring of Dedicated Support Business Unit is part of Nixu’s already earlier communicated focus on streamlining our service offering and gaining associated synergies. The Service Center in Romania will continue to serve its existing clients normally with the third level support of other Nixu digital identity professionals in different Nixu locations. The other Dutch business units providing high-end cybersecurity services will also continue on their growth path," Nixu CEO Petri Kairinen said.
Additionally, Nixu has evaluated the potential effect of write-downs for intangible balance sheet items related to earlier acquisitions and client values. At the moment, the estimated need for write-downs is 1.6 million euro.
Nixu is present in Romania since 2017, when it has acquired Expert Solution Support Center BV with operations in the United States, Romania and Australia.
($=0.9033 euro)