Xebec Announces Development in Centers of Excellence Framework in North America

Rhea-AI Summary

Xebec Adsorption Inc. (TSX: XBC) has announced a significant workforce reduction of 51 employees, representing approximately 13% of its North American workforce, in an effort to enhance operational efficiency and product focus.

Despite recent advancements in product optimization and sales, the company recognizes this action as unfortunate yet necessary for improving cost synergies across its operations. Xebec's manufacturing facilities will now specialize more effectively, with the Blainville, QC site focusing on Pressure Swing Adsorption units, and the Denver, CO site handling containerized systems.

Positive

• Implementation of the Centers of Excellence (COE) Framework to enhance operational efficiency.
• Focus on specialization in manufacturing processes to drive cost reductions.

Negative

• Reduction in workforce by 13%, impacting employee morale and potentially public perception.
• The layoff may indicate underlying challenges in achieving profitability or growth targets.

- Reduction in North American headcount by 13% to become more effective and product focused -

MONTREAL, Québec--(BUSINESS WIRE)-- Xebec Adsorption Inc. (TSX: XBC) (“Xebec” or the “Company”), a global provider of sustainable gas technologies, announced today a development with its previously announced Centers of Excellence (“COE”) Framework to ensure the Company’s global footprint becomes more effective and product focused. Effective today, Xebec has made the difficult decision to reduce 51 employees from its full-time workforce, representing approximately 13% of its North American employee base.

“This is a very challenging day for us as we part with some of our dedicated and talented colleagues. While we have made successful strides in product and process optimization, alongside significant sales efforts, today’s reduction of employees is an unfortunate byproduct of driving further efficiencies. We sincerely wish all these members of the Xebec family the best of luck with their future endeavors and thank them for their years of service,” stated Mike Munro, Chief Operating Officer at Xebec Adsorption Inc.

Over the last several months through its COE Framework, Xebec has taken steps to enact product and process standardization and unlock cost synergies across acquisitions completed over the last two years. For example, the Company’s Blainville, QC manufacturing facility is now focused on manufacturing proprietary Pressure Swing Adsorption (PSA) units and its Denver, CO manufacturing facility is focused on containerized and compression-based systems. This level of specialization brings cost optimizations and improved execution across facilities.

Related links:
https://www.xebecinc.com

About Xebec Adsorption Inc.

Xebec is a global provider of clean energy solutions for renewable and low carbon gases used in energy, mobility and industrial applications. The company specializes in deploying a portfolio of proprietary technologies for the distributed production of hydrogen, renewable natural gas, carbon capture, oxygen and nitrogen which is supported by a service network under the brand “XBC Flow Services”. By focusing on environmentally responsible gas generation, Xebec has helped thousands of customers around the world reduce their carbon footprints and operating costs. Headquartered in Québec, Canada, Xebec has a worldwide presence with nine manufacturing facilities, seventeen Cleantech Service Centers and four sales offices spanning over four continents. Xebec trades on the Toronto Stock Exchange under the symbol (TSX: XBC). For more information, xebecinc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220713005803/en/

Investor Relations:

Xebec Adsorption Inc.

Brandon Chow, Director, Investor Relations

bchow@xebecinc.com

+1 450.979.8700 ext 5762

Source: Xebec Adsorption Inc.

FAQ

What is Xebec Adsorption Inc.'s recent workforce reduction announcement about?

Xebec announced a 13% workforce reduction, laying off 51 employees in North America to improve efficiency.

How does the workforce reduction affect Xebec Adsorption Inc.'s operations?

The reduction aims to streamline operations and enhance product focus as part of their Centers of Excellence initiative.

What facilities are involved in Xebec Adsorption Inc.'s product specialization?

The Blainville, QC facility will focus on Pressure Swing Adsorption units, while the Denver, CO facility will handle containerized systems.

When did Xebec Adsorption Inc. announce its employee layoffs?

The layoffs were announced effective immediately, though the specific announcement date isn't provided.

What financial impact does the workforce reduction have on Xebec Adsorption Inc.?

While the aim is to improve efficiency and reduce costs, the layoffs may also reflect challenges in profitability.