Atos’ ‘ambitious’ turnaround plan questioned by investors
Investors outsourcing tech giant Atos are voicing their doubts about the firm’s ambitious and complicated turnaround plan.
Last June, Atos announced a two-way split of its operations that involves creating a new brand, Evidian, for faster-growing units such as digital, big data, and security businesses.
Meanwhile, its remaining declining units — including data center and hosting, digital workplace, unified comms, and BPO — will be put under a Tech Foundation Co.
Under the move, over 12,370 employees were terminated in the first half of 2022, and 16,089 people were hired “predominantly in offshore and nearshore locations.”
The firm’s Group CEO Rodolpho Belmer also quit over the strategy, just months after being hired to lead a turnaround.
Cyril Charlot, founding partner at Atos’ minority stockholder Sycamore Asset Management (SAM), said their main request is that “the board members which have been there the longest are replaced with new members who are well recognized in the IT industry.”
“We have tried to engage with the management and the board in vain, so we now think it’s time to speak up, and we think other shareholders are ready to speak up too,” he added.
Atos’ losses continue to widen due to its turnaround plan. Last week, the firm shed 15% of its market valuation after Goldman Sachs swapped its rating for the shares to “sell.” Its stock also slumped to a 30-year low, with its share price now at €10.7 ($10.8).
Commenting on the controversy, an Atos spokesperson stated that the firm “embarked on a transformation plan in the interest of all its stakeholders, and the whole company is mobilized to work towards the success of this plan.”
