Broadcom named strategic vendor for Walmart virtualization solutions
Investing.com -- GTT Group (EPA:GTT) on Monday announced the resignation of its chief executive, Jean-Baptiste Choimet, as the company undertakes a review of its unit, Elogen.
Shares of the company were down 3.3% at 03:54 ET (08:54 GMT).
In a statement, the company said that Philippe Berterottière, chairman of the board of directors, will take over as interim CEO while a search for a permanent successor is conducted.
The leadership change comes amid a difficult period for Elogen, which struggled to secure major contracts in 2024 and reported an EBITDA loss of 33 million euros for the year.
The technology and engineering group’s review of Elogen’s operations has led to plans for a major restructuring, including potential job cuts and the suspension of a planned production facility.
According to the company’s statement, Elogen will shift its focus to research and development in the long term.
As part of this transition, the company is launching a reorganisation plan that could result in the elimination of 110 positions.
GTT has stated that it will first offer voluntary redundancy packages to limit the number of forced layoffs.
Additionally, the planned construction of a gigafactory in Vendôme will be put on hold, with the company exploring alternative uses for the site in consultation with local authorities.
Despite the challenges at Elogen, GTT maintains that its core operations remain strong.
The company reaffirmed its revenue and EBITDA targets for 2024, stating that financial performance is expected to reach the upper end of projections issued last October.