WithSecure has completed its change negotiations

WithSecure Corporation, Stock Exchange Release, 13 December 2023, 11:00 EET

WithSecure has completed its change negotiations

WithSecure Corporation announced on 31 October 2023 that it will start change negotiations in Finland and local employee consultation processes in other countries to strengthen profitability and to align cost structure with the updated strategy of the company. Negotiations have now been mostly completed in each applicable country.

At the start of the negotiations, it was estimated that potential redundancies could result in the reduction of approximately 140 positions globally. As a result of the negotiations, a reduction of 92 positions, of which 26 are in Finland, will take place. In addition, WithSecure has initiated other measures to increase efficiency and to achieve cost savings.

The reduction of positions, combined with other cost-saving measures, will lead to approximately EUR 20 million of annual cost savings. The cost savings are expected to be achieved gradually, starting from the first quarter of 2024. The savings will impact all businesses of WithSecure.

The changes will incur an approximately EUR 4.8 million one-off expense that will be recognized in the fourth quarter of 2023. The expenses are to be realized mostly during the year 2024.

Savings resulting from the change processes and streamlining of the operating model will gradually, starting from the first quarter of 2024, improve the profitability of the cyber security consulting business that is currently subject to strategic review. The gross margin of the business in scope of the review for the period January – September 2023 was 40%. The gross margin is expected to gradually improve to slightly over 50% in the next three-year period. Revenue of the business in scope of the review for the period January – September 2023 was EUR 22.7 million. Revenue is expected to grow at market growth rate of 10 – 15% annually in the next three-year period.

Contact information:

Laura Viita

Vice President, Controlling, investor relations and sustainability

WithSecure Corporation

+358 50 487 1044