C. Restructuring for Cost Reduction (Making Employees Redundant)

Following an unsuccessful attempt to reduce employee costs through a ‘delayering’ exercise (most employees came back on temporary contracts), this project is a restructure of the organization from a functional one to a matrix encompassing function and geography.  About 7% of the employees are made redundant. 

The full impact of this corporate project is expected to be achieved within two decision Rounds. It consists mainly of a reduction of costs, mostly during the second Round because of the initial expense of redundancy payments. The cost of implementing this project is given in section 6.19.