KUALA LUMPUR (April 29): Salutica Bhd (KL:SALUTE) will slash about 53% of its workforce beginning April 30, in a sweeping rationalisation exercise aimed at streamlining operations and shoring up long-term financial sustainability.

The retrenchment, involving roughly 250 employees, will be carried out at its wholly owned subsidiary, Salutica Allied Solutions Sdn Bhd, according to the group’s bourse filing.

The company said the decision followed a comprehensive review of staffing needs, market conditions and operational efficiency. Affected employees will be offered support measures including career counselling and job placement assistance, it added.

The group expects the exercise to incur one-off restructuring costs that will weigh on earnings for the financial year ending June 30, 2026 (FY2026). However, management believes the move will deliver cost savings and improve efficiency over the longer term.

“The initiative is in the best interest of the company to align its cost structure with current operational needs,” it said, noting that the retrenchment exercise does not require shareholder or regulatory approval.

Headquartered in Ipoh, Perak, Salutica specialises in designing and manufacturing consumer and business electronic product development like Bluetooth stereo headsets, smartwatches and precision light guides for optical touch screen systems.

It is primarily an original design manufacturer and its clients include major American, European and Japanese electronics and information technology firms.

Salutica has been loss-making for seven consecutive years. For the six months ended Dec 31, 2025 (1HFY2026), it posted a narrowed net loss of RM13.1 million compared with RM15.17 million a year earlier, despite revenue more than doubling to RM15.39 million from RM6.85 million.

Shares of Salutica have also remained under pressure, hovering near all-time lows. Having declined 54.3% over the past year, the stock closed at 10.5 sen on Wednesday, valuing the company at RM49.23 million.