Electromagnetic Geoservices (EMGS) today announces measures to restructure the company and reduce its workforce. The measures are designed to reduce costs, focus resources in key areas and improve the company's financial performance.

The vessel fleet will be temporarily reduced from three to two vessels, and the organisation will be scaled accordingly. These actions will result in 29 temporary layoffs, 28 redundancies and 4 consultancy contracts being terminated.

Roar Bekker, EMGS acting chief executive officer, said:

"Although we have been successful in our efforts to reduce operating costs in late 2008 and early 2009, we must now further reduce our operating expenses to match the current demand environment. Today's reduction in workforce is a difficult decision as we realise the hardship this will impose on affected employees.

"However, we believe that the plan announced today is necessary and the right course of action to streamline our operations into a more efficient and commercially oriented business. These actions will secure a sustainable financial position short-term, whilst enabling the company to respond to increased demand in a profitable manner."

EMGS anticipates that the measures will result in annual reductions in operating expenses of approximately USD 8 - 10 million.

As a part of the restructuring, EMGS plans to further rationalize its product development efforts to focus on existing products, and is working with its customers on potential new programs that involve sharing of research and development costs and capital expenditures.