Hexagon continues to build on its reality capture, measurement, and positioning foundation, to deliver more software-centric, business-critical, and high-value solutions for customers. Their demand for more productive, sustainable, high-quality products and operations is accelerating, positioning Hexagon ideally for continued profitable growth.
To leverage these opportunities and build a strong financial profile for shareholders, we constantly look for efficiencies and investment opportunities to strengthen our skills and focus on growth areas.
Therefore, Hexagon will take a one-off charge of approximately 200 MEUR in Q3 2023, with a similar cash impact. The program will be implemented over the next 6 quarters and is expected to generate annualized cost savings of 160-170 MEUR, reaching the full run-rate impact in early 2025.
The program is focused on a number of areas, including:
- Reduction of Hexagon’s office and facilities footprint by approximately 25%
- Extraction of cross-divisional efficiencies to reduce overall overhead costs
- Optimization of development, manufacturing, and digital processes through automation
- Rationalization of non-core business areas and activities
The annualized savings generated will be used to underpin Hexagon’s operating margin target[1] while countering inflationary pressures and allowing continued investments in organic growth.
“Hexagon has a significant market opportunity, driven by long-term and cross-industry megatrends. Over the last few quarters we have assessed our operations through the lens of this potential and this efficiency program will provide a solid foundation for delivery,” said Paolo Guglielmini, President and CEO, of Hexagon.
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