Korn Ferry to cut about 8% of workforce, sees pretax charge of $55M-$65M

According to a regulatory filing, in light of the challenging macroeconomic business environment arising from persistent inflationary pressures, rising interest rates and global economic and geopolitical uncertainty, on October 23, 2023, Korn Ferry initiated a plan intended to align its workforce with its current business realities through position eliminations, which will affect approximately eight percent of the company’s employees. The Plan is expected to be substantially completed by the end of the third quarter of fiscal 2024. The Plan is expected to reduce the company’s annualized cost base by approximately $110M to $120M and is expected to result in an estimated pre-tax charge of approximately $55M to $65M, consisting of severance and related employee benefit payments. These charges are expected to include approximately $40M to $45M of cash expenditures, the majority of which will be paid during the remainder of fiscal 2024.