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Tuesday 19 May 2020

Restructure and redundancies as Seeing Machines adjusts to COVID-19

Seeing Machines logoCOVID-19 impact varies by industry and automotive is one of the sectors particularly hard hit. As a tech supplier to the sector, providing operator monitoring systems to improve transport safety, Seeing Machines is feeling the effects and has responded by implementing cost management initiatives and restructuring the business to reduce the cost base by A$12m over the remainder of FY20 and FY21 to help preserve balance sheet strength.

The Australian HQ’d but AIM listed company has been holding its nerve with its computer vision based offerings through a tricky time in the development of its market and recently secured a confidence boosting licence deal but COVID-19 repercussions have forced it to make changes to how the business operates. Short term measures (over the next six months) include bonus referrals and salary reductions from top to bottom that include the CEO taking a 20% drop and staff dropping down to a four day week and therefore a 20% salary reduction.

Long term changes include restructuring to focus on profits in its three business units  of Automotive, Fleet/Offroad and Aviation, with a specific focus on changing engineering and technology management to improve the balance between innovation and delivery, and a more targeted approach to R&D. Corporate Services functions will also be restructured. The scale has not been disclosed but the restructuring programme will result in redundancies. Sadly, Seeing Machines won’t be the only one forced to reduce the size of its workforce. 

Posted by: Angela Eager

Tags: software   restructure   AI   machinelearning   automotive   covid-19  

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