Hopes for more scale and fewer resources Nordic software developer Basware hopes to cut staff as it moves to cloud. A productivity programme to simplify its operations and increase scalability follows its transition to become a cloud-based services provider. Basware has now refined its strategy targets, with focus on execution and an additional set of actions to boost cloud growth and increase productivity by simplifying operations and increasing scalability.
The company aims to make productivity gains by simplifying its operations and potentially by making personnel reductions affecting 130 employees globally. As at the end of September 2016, Basware's global headcount was 1,881 employees. The company is targeting annual savings related to personnel of approximately €7m to €8m starting from 2018, in addition to other potential savings through the programme. Basware is therefore exploring the possibility of making personnel reductions which may affect operations in Finland and Belgium in addition to other locations. Any labour negotiations will be executed in cooperation with the personnel and in compliance with local legal requirements.
Cloud revenue growth is Basware's primary objective and Basware will continue to strengthen its leading market position in in order to grow cloud revenue and address the challenges which other parts of the business are facing. The aim of the planned actions is to optimize the company's operations to better support its cloud-based business model.
"Over the recent years, Basware's business operations have expanded significantly organically and through acquisitions. The market and customer demand for cloud-based services has strongly increased and we have strengthened particularly sales and marketing operations in our key markets, to accelerate the growth of our cloud-based business," says Vesa Tykkyläinen (above), CEO, Basware Corporation. "s a result of these necessary actions, some of which are difficult, Basware will become more lean and productive, and target and customer-focused."