Korn Ferry to realign workforce, eliminate underutilized office space

In a regulatory filing, Korn Ferry said, "In light of the company’s evolution to an organization that is selling larger integrated solutions in a world where there are shifts in global trade lanes and persistent inflationary pressures, on January 11, 2023, the company initiated a plan intended to realign its workforce with its business needs and objectives, namely, to invest in areas of potential growth and implement reductions where there is excess capacity. In addition to headcount reductions (which will affect less than five percent of the company’s employees), the company will further reduce its cost base by eliminating underutilized office space. The Plan is expected to be substantially completed by the end of fiscal 2023. The Plan is expected to reduce the company’s annualized cost base by approximately $45.0 million to $55.0 million (after taking into account new hires in connection with the rebalancing of the company’s workforce) and is expected to result in an estimated pre-tax charge of approximately $45.0 million to $50 million, consisting of severance and related employee benefit payments and lease termination costs. These charges are expected to include approximately $30.0 million to $35.0 million of cash expenditures, the majority of which will be paid during the remainder of fiscal 2023."