07:38 AM EDT, 10/31/2024 (MT Newswires) -- Tucows Inc. ( TCX ) , a global internet services leader, said Thursday it has implemented a capital efficiency plan, including a significant layoff in its Ting business, in order to cut expenses and move towards Ting becoming self-sufficient. It added there were also layoffs at the Tucows ( TCX ) head office level, as part of a shared services reorganization.

According to Thursday's statement, the plan includes a reduction in headcount that impacts approximately 42% of Ting's workforce and 17% of Tucows' ( TCX ) total workforce.

"We undertook the capital efficiency plan after exploring all other options to finance Ting's continued expansion," said Tucows ( TCX ) President and Chief Executive Officer, Elliot Noss.

Noss added: "This plan will put the Ting and Tucows ( TCX ) businesses back to paths of growing Adjusted EBITDA. With a more efficient cost structure and capital from our recent asset-backed securitization, we are focused on increasing penetration within our own footprints and within large partner markets like Memphis and Colorado Springs. Our goal is to transition Ting to a cash-generating business that sustains its own operations and growth."

"We expect this to lead to significant Adjusted EBITDA growth for Tucows ( TCX ) in 2025 and for the Ting business to be in and around Adjusted EBITDA breakeven in 2025.

The capital efficiency plan will be discussed in more detail in the upcoming Q3 2024 on Thursday, November 7, 2024.