CalAmp Announces Restructuring Plan to Accelerate Conversion to a Software and Subscription Services (S&SS) Business Model

Rhea-AI Summary

CalAmp (Nasdaq: CAMP), a leading connected intelligence company, announced a restructuring plan aimed at reducing approximately 8% of its workforce to align better with its Software and Subscription Services (S&SS) business model. CEO Jeff Gardner emphasized that this decision, though difficult, is necessary to accelerate business model conversion and enhance profitability. The company assures that these reductions will not impact sales initiatives and are intended to support ongoing efforts to secure new customers globally.

Positive

• Restructuring plan aimed at improving profitability.
• The company does not anticipate any impact on sales initiatives.

Negative

• Reduction of approximately 8% of employees which may affect morale.
• Potential short-term disruptions during the restructuring process.

IRVINE, Calif., Jan. 27, 2023 (GLOBE NEWSWIRE) -- CalAmp (Nasdaq: CAMP), a connected intelligence company that helps people and organizations improve operational performance, today announced that it initiated a restructuring plan to reduce approximately eight percent of its employees across various functions. The Company implemented these actions to realign its operations to be more consistent with its S&SS business model.

“We value our employees highly and considered this initiative carefully, but we believe it was necessary to help accelerate our business model conversion, address our legacy cost structure and drive higher profitability as a Software and Subscription Services business,” said Jeff Gardner, CalAmp’s president and CEO. “These actions do not impact our sales initiatives and will help support our transition while also securing new customers around the world. I would like to extend my sincere appreciation to those employees affected by this difficult decision.”    

About CalAmp 
CalAmp (Nasdaq: CAMP) provides flexible solutions to help organizations worldwide monitor, track and protect their vital assets. Our unique device-enabled software and cloud platform enables over 14,000 commercial and government organizations worldwide to improve efficiency, safety, visibility and compliance while accommodating the unique ways they do business. With over 10 million active edge devices and 275+ approved or pending patents, CalAmp is the telematics leader organizations turn to for innovation and dependability. For more information, visit calamp.com, or LinkedIn, Twitter, YouTube or CalAmp Blog.

CalAmp, LoJack, TRACKER, Here Comes The Bus, Bus Guardian, iOn Vision, CrashBoxx and associated logos are among the trademarks of CalAmp and/or its affiliates in the United States, certain other countries and/or the EU. Spireon acquired the LoJack® U.S. Stolen Vehicle Recovery (SVR) business from CalAmp and holds an exclusive license to the LoJack mark in the United States and Canada. Any other trademarks or trade names mentioned are the property of their respective owners.

CalAmp Media Contact:	CalAmp Investor Contact:
Mark Gaydos	Joel Achramowicz
mgaydos@calamp.com	Shelton Group
240.994.3027	sheltonir@sheltongroup.com
	415.845.9964

 

FAQ

What is the recent restructuring plan announced by CalAmp (CAMP)?

CalAmp announced a restructuring plan to reduce approximately 8% of its workforce to better align with its Software and Subscription Services business model.

How will the employee reductions impact CalAmp's operations?

CalAmp stated that the employee reductions will not affect sales initiatives and are intended to support the company in securing new customers globally.

Why did CalAmp decide to reduce its workforce?

The decision was made to accelerate business model conversion, address legacy cost structure, and drive higher profitability.