The French technology company Atos aims to be financially healthy again by 2028. Central to the plan are a simplified organizational structure, cost savings, and a significant investment in AI.
Atos has been through a very turbulent period. The company accumulated billions in losses and changed CEOs as frequently as a poorly performing football club changes coaches. The company now wants to turn over these dark pages. It unveils the ambitious Genesis plan to become a financially healthy organization again in four years.
Six Core Regions
To achieve this, Atos will further restructure itself. In 2023, the organization was already split into Atos and Eviden. The company we still know today as Atos comprises six service lines, including cloud infrastructure, cybersecurity, AI, and digital workplaces. Areas such as advanced computing and Vision AI are housed within Eviden.
In a next step, Atos will reduce its geographical footprint. The company identifies six core regions on which it wants to focus. The main focus is on Europe, including France and the Benelux, but it also wants to remain active in North America. Non-core markets will be ruthlessly divested.
The governance structure is also being further overhauled. A new leadership team has been appointed to steer the execution. The team consists of regional and functional leaders and domain heads. Atos emphasizes that 90 percent of key personnel has been retained.
Investing in AI
Atos will save and invest. Through optimization of service delivery and increased offshoring, it hopes to reduce general costs to a maximum of five percent of revenue. This should free up more room for strategic investments in research and development, for which Atos is reserving 500 million euros, in addition to 100 million euros it wants to invest in startups.
Of course, AI plays a major role in Atos’s master plan. The AI division will be further expanded and is expected to grow from 2,000 to 10,000 employees by 2028. Atos aims to have its entire workforce AI-certified by 2026. At the same time, the company wants to reduce its emissions: two ambitions that are at odds with each other for many companies.
Due to the investments, revenue will still decline this year, but Atos reassures investors before they start doubting with higher operating margins. By 2028, the company hopes to be financially healthy and limit the debt ratio to 1.5. Can Atos turn the tide again?