Chile. ISS, the largest Danish cleaning company in the world, seeks to reduce its workforce by about 100 employees, so it will stop operating in 13 markets considered by the firm as the least profitable and among them is Chile.
The countries that are exiting are mainly in emerging markets, including Asia and Eastern Europe. At the same time, ISS wants to do more business with so-called key accounts, such as global banks.
The 13 selected countries account for only 12% of ISS Group revenue and 8% of operating profit. In addition to Chile, the plan means the company will no longer do business in Thailand, the Philippines, Malaysia, Brunei, Brazil, Israel, Estonia, the Czech Republic, Hungary, Slovakia, Slovenia and Romania. After leaving those markets, the ISS workforce will shrink to about 390,000 people.
The company's chief executive, Jeff Gravenhorst, said ISS wants to focus on gaining greater global market share with key accounts, such as larger corporate clients. That business accounts for 46% of the company's organic growth, he said.
ISS, which is one of Europe's largest employers, is clamping down after its shares lost 18% this year, in part as hedge funds speculate against the company. The new strategy also comes after signs that some analysts were starting to question ISS's prospects. Although most had been positive, Goldman Sachs, last month, told clients to start selling ISS shares.
Leave your comment