The Copenhagen-based facility service company, ISS is discharging about 100,000 employees as it exits 13 countries that were among its least profitable markets.
ISS is exiting countries that serve just 12 percent of its group revenue and 8 percent of operating profits. The 13 countries are Thailand, Philippines, Malaysia, Brunei, Brazil, Chile, Israel, Estonia, the Czech Republic, Hungary, Slovakia, Slovenia, and Romania.
After leaving these markets, ISS’s workforce will shrink to about 390,000 people.
Jeff Gravenhorst, Chief Executive Officer (CEO) shared in media that ISS requires to focus on capturing a larger share of the $400 billion global markets for key accounts with the most significant corporate customers.
According to a statement to the stock exchange, the Copenhagen-based company anticipates organic growth to accelerate to 4 to 6 percent a year "in the medium term," from 1.5 to 3.5 percent expected in 2018. With the step to get out of its least profitable businesses will also allow ISS to focus on a smaller group of larger clients.
Gravenhorst further shared that company’s shareholders will get at least a quarter of as much as 2.5 billion kroner (S$524 million) in anticipated net proceeds.