CDI Corp. (NYSE: CDI) (the “Company”) today announced that it will undertake a realignment in the first quarter of 2014 to organize its business efforts more clearly into engineering and staffing services. The realignment will also shift support resources including many of the SG&A functions into CDI’s business units. The new structure will improve operational effectiveness and further optimize the Company’s cost structure.
The realignment will take place in January 2014, and will result in a reduction in headcount of approximately 65 to 75 employees and the consolidation of facilities. As a result of the realignment and other cost saving measures, CDI anticipates pre-tax cost savings of approximately $11 to $13 million in 2014. The Company expects to incur a restructuring charge of approximately $5 to $6 million in the fourth quarter of 2013 related to employee severance and facility consolidations and expects to incur restructuring charges of approximately $2 to $3 million in 2014 related to additional facility consolidations.
“Shifting resources directly into our businesses brings key resources closer to our clients and provides our business leaders more flexibility to leverage those resources in the most effective way,” said Paulett Eberhart, CDI’s president and chief executive officer. “We remain committed to achieving profitable revenue growth, and these moves enhance our ability to provide engineering, staffing and technology services to clients in our targeted industries.”
CDI Corp. (NYSE: CDI) is an integrated, market-leading engineering and technology services firm providing differentiated, client-focused solutions in select global industries. CDI provides Global Engineering & Technology Solutions and Professional Services Staffing through its global business operations in the Americas, EMEA and APAC. The Company also provides staffing services through its franchised Management Recruiters International, Inc. (MRI) subsidiary. Learn more at www.cdicorp.com