CyrusOne Announces Cost Reduction Initiative and European Leadership Transition
January 13 2020 - 8:30AM
Business Wire
CyrusOne Inc. (NASDAQ: CONE), a premier global data center REIT,
today announced a workforce reduction, effective immediately, that
impacts 55 employees, representing approximately 12% of the
Company’s workforce. Affected employees will receive severance, and
customary transition assistance will be provided.
“This step to rightsize the organization, while not an easy
decision, will result in enhanced margins and higher profitability
over time, strengthening our position in the current environment as
we maintain our focus on driving organic growth,” said Gary
Wojtaszek, president and chief executive officer of CyrusOne. “In
recognition of the continued moderation in demand from hyperscale
customers, a trend we first identified in late 2018, we believe it
is appropriate to reduce our cost structure to more closely align
the business with current market conditions. We continually
evaluate our expense structure and have been very proactive in
identifying opportunities to generate efficiencies, which this
action further supports.”
Additionally, the Company announced that it has mutually agreed
with Tesh Durvasula, President of Europe, that he will leave
CyrusOne to pursue other interests, effective March 1, 2020, and
remain in a consulting role through June 30, 2020. Matt Pullen,
Managing Director of Europe, will assume his responsibilities.
“I greatly appreciate Tesh’s leadership and dedication over the
last seven years and his tremendous contribution to the growth and
success of CyrusOne,” said Wojtaszek. “Since he joined, the
company’s revenue has nearly quintupled, we have successfully
expanded internationally, and we are now the third largest data
center provider in the world. He has been a great partner and
friend, and I wish him the best in his future endeavors. I am
excited that Matt, one of the original Zenium principals, will now
be leading our continuing European expansion, leveraging his
extensive experience in the region.”
Annualized cash compensation and benefit savings as a result of
these events is approximately $10.7 million, and the Company
expects to incur an estimated charge of approximately $5.9 million
with respect to such matters in the first quarter of 2020. CyrusOne
will provide guidance for full year 2020 in its fourth quarter 2019
earnings release, which is scheduled to be issued after the market
closes on February 19, 2020.
Safe Harbor Note
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The Company intends such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995 and includes this statement for purposes of complying
with these safe harbor provisions. All statements, other than
statements of historical facts, are statements that could be deemed
forward-looking statements. These statements are based on current
expectations, estimates, forecasts, and projections about the
industries in which the Company operates and the beliefs and
assumptions of the Company’s management. Words such as “expects,”
“anticipates,” “predicts,” “projects,” “intends,” “plans,”
“believes,” “seeks,” “estimates,” “continues,” “endeavors,”
“strives,” “may,” variations of such words and similar expressions
are intended to identify such forward-looking statements. In
addition, any statements that refer to projections of the Company’s
future financial performance, the Company’s anticipated growth and
trends in the Company’s businesses, and other characterizations of
future events or circumstances are forward-looking statements.
Readers are cautioned these forward-looking statements are based on
current expectations and assumptions that are subject to risks and
uncertainties, which could cause the Company’s actual results to
differ materially and adversely from those reflected in the
forward-looking statements. Factors that could cause or contribute
to such differences include, but are not limited to, those
discussed in this release and those discussed in other documents
the Company files with the Securities and Exchange Commission (the
“SEC”). More information on potential risks and uncertainties is
available in the Company’s recent filings with the SEC, including
the Company’s Form 10-K report, Form 10-Q reports, and Form 8-K
reports. The Company disclaims any obligation other than as
required by law to publicly update or revise any forward-looking
statement to reflect changes in underlying assumptions or factors
or for new information, data or methods, future events or other
changes.
About CyrusOne
CyrusOne (NASDAQ: CONE) is a real estate investment trust (REIT)
specializing in highly reliable enterprise-class, carrier-neutral
data center properties. The Company provides mission-critical data
center facilities that protect and ensure the continued operation
of IT infrastructure for approximately 1,000 customers, including
more than 200 Fortune 1000 companies.
With a track record of meeting and surpassing the aggressive
speed-to-market demands of hyperscale cloud providers, as well as
the expanding IT infrastructure requirements of the enterprise,
CyrusOne provides the flexibility, reliability, security, and
connectivity that foster business growth. CyrusOne offers a
tailored, customer service-focused platform and is committed to
full transparency in communication, management, and service
delivery throughout its nearly 50 data centers worldwide.
Additional information about CyrusOne can be found at
www.CyrusOne.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200113005277/en/
Investor Relations Michael Schafer Vice President,
Capital Markets & Investor Relations 972-350-0060
investorrelations@cyrusone.com
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