De Lage Landen (DLL) has announced that it expects to reduce its
global workforce by 3 percent in response to the ongoing economic
downturn.
In a statement the lessor said that the reduction in its
workforce was “relatively small”, and that the layoffs have “to a
large extent” already occurred.
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“It is still a very painful measure for us,” said CEO Karel
Schellens. “Every full-time employee reduction is significant and
important, but we have to act now to warrant a strong long-term
position.”
The company added that the economic situation has still not
improved, despite numerous worldwide government initiatives to
restore confidence in the markets.
“The entire financial industry, including De Lage Landen, is
affected by this market turmoil,” Schellens said, before adding
that the company will continue to invest in its infrastructure,
processes and employees.
DLL, which has experienced steady growth in the past, is now
having to adapt to lower growth rates, as well as balancing a
scarcity of funding in the money markets.
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By GlobalData“We are used to reporting double digit growth for years on end,
but now we have to adapt to lower growth rates. That in turn
affects workload and consequently the size of our workforce,”
Schellens said.
The lessor operates in 29 countries worldwide. Last year, the
lessor decided to focus on developing margin rather than
portfolio.
This led the lessor to perform reasonably well, with
year-on-year profits for the first half of 2008 up 3 percent, a
total of €112 million.
“We still expect to continue reporting growth in most, if not
all of the areas we are operating in,” a spokesperson for the
company added. “We can still grow, but more moderately and in a
controlled fashion.”
The lessor’s Dutch parent, Rabobank, said it still expects
“moderate growth” this year, and has gone through several rounds of
funding in the last quarter.
