European ARM Giant Aktiv Kapital Announces Reorganization; Cutting 15% of Jobs

Aktiv Kapital announced Monday that it was implementing a cost savings program that will result in the closure of several offices around the world and a workforce reduction of 15 percent.

Aktiv, based in Oslo, Norway, is one of the largest bad debt buyers and accounts receivable management firms in Europe and Canada. The company has operations in 11 countries and reported revenues of $220 million in 2007.

The company said that restructuring and office closures would impact more than 200 employees, or around 15 percent of its total workforce, by July of this year. Aktiv hopes to reduce overall costs by 10 percent. The company said it will take a restructuring charge of $4.2 million in the first quarter of 2009.

Commenting on the cost reduction program, Aktiv CEO Erik Øyno said in a statement, “In order to secure our operations and profitability, we find it necessary to proactively prepare the organization for future challenges. We regret that these changes will affect some of our competent and loyal employees.”

Aktiv’s Canadian operations will be significantly impacted by the program. The company said that it is closing its Montreal office and that all of the collections in the province of Quebec will be outsourced. In addition, staff in the office in London, Ontario will be reduced.

The company’s Canadian operations, Aktiv Kapital Canada, were formally rolled into the Aktiv Kapital brand in the middle of last year following the company’s acquisition of Portfolio Management Group in 2005 (“Portfolio Management Group is Now Aktiv Kapital Canada,” July 14, 2008).