RUAG Electronics realigns its strategy with the market

With the realignment of its strategy, RUAG Electronics is focusing on the three core segments of Simulation & Training (S&T), Network Enabled Operations Services (NEO Services) and Homeland Security (HLS). As an industry partner to the Swiss Armed Forces, the company also addresses both national and international security forces.

The military simulation market is increasingly moving away from virtual simulation in enclosed systems towards real-life simulation in the field (live simulation). This is causing global stagnation in the virtual simulation market, which now faces strong cut- throat competition. Declining domestic demand for virtual products offered by Simulation & Training means that this line of business can no longer be operated profitably in its present form. RUAG Electronics is therefore obliged to shift its Simulation & Training business from virtual to live simulation, with the structural changes this entails.

Around 90 employees are affected by restructuring. The plan is to relocate business activities from Unterseen and Berne to Thun. During this process, RUAG Electronics is striving to offer as many of the affected employees as possible a position within RUAG or at one of its partner companies, and is supporting them with an internal job placement centre. Despite all efforts, redundancies of under a third of those affected cannot be ruled out entirely. Should it come down to this, the existing redundancy scheme will be put into practice.

"In focusing on our core competencies, we aim to offer our customers clear added value", explains Andreas P. Herren, CEO of RUAG Electronics. "In the area of Simulation & Training, the measures we have implemented should serve to strengthen our international market position and align it with the changed market environment, enabling us to achieve solid earnings again in the mid-term."