LIFE IS HARD (LIH), a tech company listed on the Bucharest Stock Exchange’s AeRO market, has begun an efficiency drive following unsatisfactory financial results in 2025. The company aims to eliminate economically unsustainable structures from its current operating model and will focus its activities on IT&C - which generated revenues of over RON 8 million in 2025 - as well as on Insurance, where LIH holds a strong leadership position both in financial performance and in scaling potential.
LIH ’s Board of Directors approved, at its meeting on March 2, 2026, the reorganization plan for the Telecommunications division, which over the past two years has recorded a steady decline in performance, becoming a source of pressure with a negative impact on the company’s profitability.
“Up to 2023, telecommunications contributed significantly to LIH’s financial performance, but from 2024 this division began to lose traction, and last year it generated operating losses. In a market facing an accelerated structural decline, further investment in this direction is no longer justified. We will retain the resources that represent LIH’s essential expertise in the telecom industry - resources that can continue to support growth - and we will integrate them into our IT&C and digital infrastructure division, where profitability indicators remain solid,” says Cătălin Chiș, CEO LIH.
The first reorganization measures include eliminating the telecom territorial sales model and shifting toward lead generation and inside (telephone-based) sales for IT&C services. Accordingly, LIH will consolidate its regional operations and close certain locations, as well as eliminate a number of positions within its operational structure. The elimination of roles results exclusively from a genuine change to the organizational chart and is not related to employees’ individual performance.
In the context of auditing the financial statements as of December 31, 2025, the company will fully write down the carrying amount of goodwill related to the reorganized activity, in the amount of RON 10,648,333.92, in accordance with OMFP 1802/2014 provisions on events after the reporting date. This adjustment will have a negative impact on the result for the 2025 financial year, but it is a non-cash accounting measure with no impact on cash flows.
“We are taking on this negative impact in order to eliminate a division that has become economically unsustainable and, along with it, a significant pressure on operating costs. I thank all LIH investors who stand by us and understand that this recalibration means a stronger financial foundation for the coming financial years—one that is necessary to continue building in a healthy way”, says Cătălin Chiș.
