Jakarta – Integrated service company, ISS A / S from Denmark, plans to reduce around 100,000 workers, representing one fifth of its global workforce after the company left 13 countries.
ISS Chief Executive Officer Jeff Gravenhorst said the company wanted to focus on getting a larger share of the global market worth US $ 400 billion with key partners, including the largest corporate customers. The cooperation accounts for 46% of the company’s organic growth.
Reported by Bloomberg, ISS will stop operations in most emerging market countries, including in Asia and Eastern Europe. At the same time, ISS wants to increase business cooperation with major companies such as global banks.
These 13 countries only represent 12% of the ISS group’s income, and 8% of the company’s operating profit. The 13 countries include Thailand, the Philippines, Malaysia, Brunei, Brazil, Chile, Israel, Estonia, the Czech Republic, Hungary, Slovakia, Slovenia and Romania. After leaving the market, the ISS workforce will shrink to around 390,000 people.
The Copenhagen-based company estimates organic growth to increase 4% to 6% per year “in the medium term,” from 1.5% -3.5% expected in 2018.
ISS, which is one of the largest companies in Europe, took a drastic step after its shares slumped around 18% this year, partly because of speculation on hedge funds against the company.
The new strategy also came after signs that some analysts were starting to question the ISS outlook. Despite being largely positive, Goldman Sachs last month told clients to start selling ISS shares.