Next Biometrics to further cut costs and headcount to mitigate COVID-19 impact on fingerprint business
Next Biometrics is undertaking another set of cost reduction steps to optimize its fingerprints business in the face of challenges posed by the COVID-19 pandemic, according to a company announcement, with the goal of lowering annual operating expenses by NOK 20 million (roughly US$1.93 million) per year.
The expected savings are in addition to NOK 45 million ($4.3 million) in cost reductions the company previously announced, including a 20 percent reduction in head-count leaving Next Biometrics with 65 full-time employees. An initial round of cost-cutting was reported to be “on track” nearly a year ago.
The latest round of cuts could potentially affect all global operations, and include a further-reduced headcount.
The analysis, execution, and impact of Next Biometrics’ cost reductions related to COVID-19 are ongoing, the company says, and further details will be provided with the planned Q1 report publication, if not sooner, according to the announcement.
Several board members were recently reported to be declining re-election, leaving the company’s largest shareholder without board representation.
In the meantime, Next Biometrics has also booked an order and a follow-on worth an estimated combined $1.1 million from a customer in India this year.