Romsoft decided to lay off 20% of its staff, relocate stores, and cut the communication budget

“All departments will be affected. Sales are presently at an acceptable level, but we forecast a sharp drop in 2009,” Adrian Furnica, the company’s Chief Executive Officer (CEO) told Business Standard.

“Based on negotiations we have had so far with space owners, we have already obtained a 20 percent cut in costs,” said Furnica. The company has already announced it will close 12 of its 28 stores opened in 2008, which posted losses.

The decision was made due to the effects of the crisis on the financial market and to exchange rate fluctuations. “The main problem at present on the market is that the final user is unable to take out loans, which is blocking consumption,” said the company’s CEO.

Romsoft initially estimated a 25 percent increase in business in 2008, from the €40 million posted in 2007, but this forecast was revised downward by 10 percent.

The company registered $38 mln (€28.3 mln) in net sales and $51,000 (€38,000) in profit in this year’s first quarter.