OTTAWA (CP) -- Allen-Vanguard Corp. is eliminating about 100 employees -- 15 percent of its total workforce of 660 -- in a cost-cutting restructuring.
The Ottawa-based maker of bomb-disabling technology, blast suits and other extreme-hazard gear said Thursday it will take a restructuring and severance hit of $4.6 million in its fourth quarter ending Sept. 30.
Management expects to realize annual savings of $6.5 million from the downsizing, plant consolidations and other efficiency measures.
The staff cuts are concentrated in the personal protection systems segment, "where business acquisitions have created overlapping functions and facilities," Allen-Vanguard stated.
The company plans to move its decontamination technology business from Stoney Creek, Ont., to Ottawa, eliminating 11 jobs.
Thirty other workers, including two vice-presidents, "will be eliminated from efficiency gains in operations and administration at Ottawa and at Ashburn, Va."
And assembly of bomb-disposal robots will be relocated from Kilbrittain, Ireland, to Tewkesbury, England, with the loss of 43 assembly jobs at the Irish plant and 18 positions in Tewkesbury.
"The decisions announced today are the result of a rigorous planning process that has been underway for some time," stated CEO David Luxton.
"Our operations are readily scaleable and therefore we expect to be able to maintain and grow revenue from a permanently lower cost base."
Allen-Vanguard shares, which have tumbled to penny-stock status from over $10 a year ago, traded up 5.5 cents to 35 cents shortly after Thursday's announcement.
