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AudioDev restructures operations, layoffs planned

AudioDev, leading supplier of test equipment for optical media, is restructuring its operations in the face of a market slowdown. Some 25 jobs are to go.

While the market for optical media is expected to show continued growth in the next few years with the arrival of blue laser technology, AudioDev believes it's nonetheless a mature market in which demand for the company's DVD testing equipment is expected to decline.

Demand for blue-laser testing equipment is likely to develop at a slower pace than previous models, says the Swedish company. Though, it reckons this fall could be offset by an increase in overall price levels on the market.

AudioDev also expects to be able to cut spending on internal support processes. The restructuring efforts are
expected to lead to an overcapacity in workforce of some 25 jobs.

”Our current share of the global market for testing equipment is approximately 50 per cent. Although we believe that the market will continue to grow, and that we will continue to increase our market share, we must streamline our activities in order to retain future cash-flows. The impact on our staff has of course made this a very difficult decision,” said Christer Sjöström, CEO of AudioDev.

Audiodev will downsize its operations in Malmö, affecting primarily production and internal support processes. The R&D and sales units are likely not to be affected. Negotiations with union representatives will be initiated immediately.

The restructuring process will not affect AudioDev’s strategy to expand business operations through acquisitions.

Story filed 05.04.06

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