GuestLogix, Inc., the leading global provider of ancillary-focused merchandising, payment and business intelligence technology to airlines and leading online travel retailing platform provider to the passenger travel industry, today announced restructuring and cost savings plans designed to improve operating results.
The restructuring efforts are expected to generate annualized savings to the Company in the range of $6.0 million to $6.5 million with the impact commencing in Q4 2015. The changes are expected to yield significant improvements in both the efficiency of the Company and its overall customer service over the next several quarters and will have no impact on the near-term delivery of projects to its clients.
“Our market-leading customer base, as well as our valued shareholders, recognize that GuestLogix is best positioned to continue to lead the evolving ancillary and travel retailing marketplace,” said John Gillberry, Chief Executive Officer of GuestLogix. “Along with the rest of the Board of Directors, I am confident that as we execute on our plans, we will not only maintain our leadership position and see refreshed topline growth, but importantly begin to see strengthened and sustainable earnings.”
Key restructuring and cost reduction components of the plan include:
• Reducing GuestLogix’ salaried workforce by 30 people, effective immediately within all geographies;
• Ending engagements with over 25 contractor and third party service providers;
• Rationalizing service providers for key business services; and
• Significantly reducing non-essential General and Administrative costs such as travel and entertainment expenses, communication costs, rationalizing excess space, etc.
The Company believes that these initiatives will streamline operations, improve business processes and remove long-time complexities within the business. Gillberry continued,“While some decisions are met with difficulty as they involve the loss of jobs for some of our workforce, we expect the overarching result will be viewed as necessary steps by both our customers and our shareholders in order to achieve profitable growth.”
About GuestLogix, Inc.
GuestLogix, Inc. (guestlogix.com | openjawtech.com), is a leading global provider of ancillary-focused merchandising, payment and business intelligence technology to airlines and the passenger travel industry, both onboard and off-board. Bringing over a decade of expertise as the industry’s most trusted onboard transaction processing partner to airlines, rail operators and elsewhere in the passenger travel industry, GuestLogix powers the industry’s growing reliance on ancillary revenue generation. Both direct to operators as well as through partnerships with global leaders in catering, duty-free, inflight entertainment and self-service retail experts, the Company provides the payment services touching over 1 billion travelling consumers each year. On December 23, 2014, GuestLogix announced the acquisition of OpenJaw Technologies, a Dublin-based technology company focused on travel retailing innovation in the e-commerce segment. GuestLogix' global headquarters is located in Toronto, with regional offices located in Dallas, London, Dublin, Galway, Madrid and Hong Kong, and product innovation labs located in Moncton and Kraków.
© 2015 GuestLogix. All Rights Reserved.
This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with GuestLogix' business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate","believe","plan","estimate","expect","intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect GuestLogix' current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Filing Statement filed on August 12, 2015 with the regulatory authorities. GuestLogix assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.