EFI top bosses take voluntary pay cut ahead of Q1 results

The reduction was volunteered by chief executive Guy Gecht, president Fred Rosenzweig and chief financial officer John Ritchie, in support of the company’s cost reduction activities, which have included employee salary reductions of 5%.

Gecht’s and Rosenzweig’s annual base salaries will be reduced by 15% to US$527,000 (A$723,000) and US$450,500 (A$618,000) respectively, while Ritchie’s will be reduced by 10% to US$279,000 (A$383,000), after EFI accepted the voluntary reduction.

In its preliminary results, the company said that it expected first-quarter revenues to be approximately US$95m-96m (A$130-132m), compared to US$136.6m (A$187.4m) in the same quarter last year.

Gecht said: “Our Q1 revenue was impacted by the deteriorating spending environment, as well as the difficulty for customers to obtain financing. We took aggressive actions to reduce our operational costs to reflect these lower revenue levels.

“Given the current market demand, we are implementing further steps to realign our cost structure while focusing on gaining market share through leveraging our industry leading products.”

EFI said that while none of its product lines were immune to the impact of the global economy, its inkjet business was most affected by the slowdown.

Last month, EFI closed its Sydney, London, Paris and Milan offices in a bid to reduce administration costs.

Read the original article at www.printweek.com.

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