translated from Spanish: Giant of the cleaning that employs 15 thousand people in the country withdraws from Chile

One and the world’s largest private employers, the Danish IIS, plans to cut 100,000 jobs around the world, when you complete your output from 13 countries who are among their least profitable markets.
One of them is Chile, where it is present since 2004. The firm currently has more 15,000 employees from Arica to Punta Arenas. Huechuraba-based company provides services of cleaning, catering, maintenance security and properties.
The announcement, made at the international level by the company and to reproduced by Bloomberg, generated uncertainty at the local level in relation to what will be the fate of its operations in Chile. Despite the radical of his departure from Chile, sources close to ISS Chile pointed out that the objective is that there are no layoffs in Chile in the short term.
The business plan includes the search for a strategic partner that take care of the operation on national ground, then that by 2020 is concrete output of the Danes. A sort of law key, with 15 thousand workers included.
ISS worldwide measure represents approximately one-fifth of the global workforce of the company. Shareholders will get at least one quarter of up to 2,500 million kronor (US $ 383 million) in anticipated net profits, said on Monday the Chief Executive Jeff Gravenhorst by phone.
ISS plans to abandon countries mainly in emerging markets, including Asia and Eastern Europe. At the same time, the company wants to do more business with the so-called key accounts, as global banks.
Although the stock fell to 3.3 per cent once investors learned of the plans on Monday, analysts said that the new strategy of ISS was good news for the company’s long-term prospects.
“The market tends to be a little myopic these days,” said analyst Sydbank Mikkel Emil Jensen. What ISS is doing is to “invest more in stable margins in the long term, rather than higher margins”. That includes spending money here and now “things like robots” to keep abreast with the latest technology in the industry, he said.
ISS is leaving the countries that they represent only 12 per cent of its Group revenues and 8 percent of operating earnings. The plan means that the company will no longer make business in Thailand, Philippines, Malaysia, Brunei, Brazil, Chile, Israel, Estonia, Czech Republic, Hungary, Slovakia, Slovenia and Romania. After leaving those markets, ISS workforce will be reduced to about 390,000 people, he said.
CEO Gravenhorst said ISS wants focus on obtaining greater participation in the global market of US $400 billion for key accounts with large corporate clients. That business represents 46 percent of the company’s organic growth, with ISS at present around 2 per cent of the market of key accounts, he said.
“The fact that plan to get rid of 50 percent of customers while only 12 per cent of turnover and 8 per cent of the profits they lose shows that they are getting rid of a group of clients with limited growth potential.” , said Jensen, of Sydbank. “Find me it a little difficult to understand that the actions are low”.
ISS, based in Copenhagen, expected organic growth to accelerate to 4-6 per cent a year “in the medium term”, from 1.5 to 3.5 per cent expected in 2018, said in a statement.
ISS, which is one of Europe’s biggest employers, is taking drastic measures when its shares lost 18 percent this year, in part as a hedge funds speculated against the company. The new strategy also occurs after signals that some analysts were beginning to question the perspectives of ISS. Although most had been positive, Goldman last month told customers that they will begin to sell shares of ISS.
Read the note from Bloomberg in English here.

Original source in Spanish