05.10.2015

Essex cuts back

US based crane rental group Essex Rental has announced that it is laying off around eight percent of its workforce as part of an ongoing cost reduction plan.

The reduction is expected to result in economies of over $1.7 million, which when added to the previously announced corporate governance changes, will result in total annualised savings of approximately $2.2 million. See Essex abandons sale

Chief executive Nick Matthews, said: "We made the difficult decision to eliminate a number of positions within the company in order to help reduce expenses and improve profitability. We continue to believe that our business is in the midst of a gradual improvement, and while these decisions are never easy, I am confident the reductions were necessary and in the best interests of all stakeholders."

The company says that the reductions are likely to incur restructuring costs of around $100,000 during the third quarter, primarily due to termination benefits, including severance, which are expected to be settled in cash.