MONTRÉAL, April 17, 2023 (GLOBE NEWSWIRE) — mdf commerce Inc. (“mdf commerce” or the “Corporation”) (TSX:MDF), a SaaS leader in digital commerce technologies, announces that the Corporation effected a workforce reduction to lower the Corporation’s operating expenses.
In addition to the cost reductions previously announced at the time of its third quarter of fiscal 2023 financial results, mdf commerce has further reduced its global workforce by approximately 40 people, representing approximately 6% of its total employees. This decision was made after careful consideration to improve the Corporation’s financial performance.
mdf commerce estimates that it will incur non-recurring charges of approximately $0.7 million in connection with this restructuring, primarily consisting of severance payments, notice pay and employee benefits contributions. The majority of these restructuring charges will occur in the first quarter of fiscal 2024.
Despite the difficult decision to reduce its workforce, mdf commerce remains fully committed to providing exceptional client service to its customers. This decision was necessary to maintain a sustainable financial position and improve cash flows from operations, as we continue to invest for future growth and in the success of the Corporation.
“We understand that this news is difficult for our team, and we are committed to providing support to those impacted during this transition,” says Luc Filiatreault, President and CEO of mdf commerce. “We appreciate the contributions of all our employees, and we will do everything we can to make this as smooth as possible.”
mdf commerce would like to reassure its employees, customers and investors that this decision will not impact its ability to provide top-quality services and solutions. The Corporation remains focused on its long-term vision of becoming the North American leader in government eprocurement solutions with the objectives of profitably growing its businesses, including its ecommerce and emarketplaces platforms. mdf commerce remains committed to investing in its people, technology and infrastructure, and looks forward to continuing to deliver exceptional value to its clients and customers.
About mdf commerce Inc.
mdf commerce Inc. (TSX:MDF) enables the flow of commerce by providing a broad set of software as a service (SaaS) solutions that optimize and accelerate commercial interactions between buyers and sellers. Our platforms and services empower businesses around the world, allowing them to generate billions of dollars in transactions on an annual basis. Our eprocurement, ecommerce and emarketplaces solutions are supported by a strong and dedicated team of approximately 650 employees based in Canada, the United States, Ukraine and China. For more information, please visit us at mdfcommerce.com, follow us on LinkedIn or call 1-877-677-9088.
In this press release, “mdf commerce”, the “Corporation” or the words “we”, “our” and “us” refer, depending on the context, either to mdf commerce Inc. or to mdf commerce Inc. together with its subsidiaries and entities in which it has an economic interest. All dollar amounts refer to Canadian dollars unless otherwise expressly stated.
Certain statements in this press release constitute forward-looking statements within the meaning of applicable securities laws. These statements may relate to the estimates of the charges relating to the workforce reduction and involve known and unknown risks, uncertainties and other factors that may cause mdf commerce’s, or the Corporation’s industry’s actual results, levels of activity, performance or achievements, to be materially different from those expressed or implied by any of the Corporation’s statements.
Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “could”, “expects”, “plans”, “anticipates”, “intends”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negatives of these terms or other comparable terminology. These statements are only predictions. Forward-looking statements are based on management’s current estimates, expectations and assumptions, which management believes are reasonable as of the date hereof, and are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and are accordingly subject to changes after such date. Undue importance should not be placed on forward-looking statements, and the information contained in such forward-looking statements should not be relied upon as of any other date. Actual events or results may differ materially. We cannot guarantee future results, levels of activity, performance or achievement. We disclaim any intention, and assume no obligation, to update these forward-looking statements, except as required by applicable securities laws.
All figures reported relating to the estimates of the charges are preliminary, are based on current expectations and are unaudited and subject to change and adjustment. The estimates of the charges that the Corporation expects to incur in connection with the workforce reduction, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from estimates.
For further information:
Brigitte Guay, Director – Corporate Communications
Toll Free: 1-877-677-9088, ext. 5123