Subscribe
Be the first with the news that moves the market- Office furniture manufacturer, Inscape (TSX:INQ) has implemented a range of cost-cutting measures in an effort to outlast a pandemic-related downturn in business
- Some full-time staff members have been let go, while other have been temporarily stood down
- Salary and work schedule reductions have also been initiated company-wide
- The company’s two manufacturing facilities are currently operational, albeit under strict health and safety guidelines
- Inscape (INQ) is currently down 23.08 per cent and is trading at C$0.50 per share, with a market cap of $5.52 million
Inscape (TSX:INQ) has implemented a range of cost-cutting measures in an effort to outlast a pandemic-related downturn in business.
Headquartered in Ontario, the company manufactures a variety of furniture and wall products for office spaces.
Some of Inscape’s customers have continued their operations under designation as an essential service. As such, they have continued with their planned purchases and installations.
However, many of the company’s other projects have either been delayed or cancelled entirely, as businesses wait to evaluate the effect of COVID-19 on their operations.
As a result, Inscape has taken aggressive actions to reduce its expenses wherever it can in order to maintain its operations until market stability returns. This includes the termination of some full-time employees, as well as the temporary standing down of others.
In addition, the company has introduced a Work Share program, under which most office staff will carry out their duties on a rotational, reduced-week basis. Inscape noted that this may be extended to include other employees within different segments of the business.
For those workers unable to work a reduced week as a result of operational demands, a 20 per cent reduction to their salaries will be imposed. Management personnel will also take a 25 per cent cut, while the company’s CEO, Eric Ehgoetz, will take a 30 per cent reduction.
Inscape’s Board of Directors will also be subject to a 30 per cent cut to their cash compensation packages.
These employee salary cuts will remain in place for the next three to four months, while the management, CEO and board cuts will stay in effect for six months.
In support of these reductions, the company is also pursuing access to government subsidy, loan and grant programs, some of which have already been granted.
Operationally, Inscape’s two manufacturing facilities remain active, albeit under strict health and safety guidelines.
In order to increase its resilience, Inscape is working to create new selling strategies, as well as evaluating and adapting existing product development plans and improving its day-to-day efficiencies.
Inscape (INQ) is currently down 23.08 per cent and is trading for C$0.50 per share at 2:15pm EDT.
