CDI 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."
About CDI
CDI Corp. 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
Caution Concerning Forward-Looking Statements
This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. All statements that
address expectations or projections about the future, including, but not
limited to, statements about our strategies for growth and future financial
results (such as revenue), are forward-looking statements. Some of the
forward-looking statements can be identified by words like "anticipates,"
"believes," "expects," "may," "will," "could," "should," "intends," "plans,"
"estimates" and similar expressions. These statements are not guarantees of
future performance and involve a number of risks, uncertainties and
assumptions that are difficult to predict. Because these forward-looking
statements are based on estimates and assumptions that are subject to
significant business, economic and competitive uncertainties, many of which
are beyond our control or are subject to change, actual outcomes and results
may differ materially from what is expressed or forecasted in these
forward-looking statements. Important factors that could cause actual results
to differ materially from the forward-looking statements include, but are not
limited to: weakness in general economic conditions and levels of capital
spending by clients in the industries we serve; weakness or volatility in the
financial and capital markets, which may result in the postponement or
cancellation of our clients' capital projects or the inability of our clients
to pay our fees; the inability to successfully execute on our strategic plan;
the termination or non-renewal of a major client contract or project; delays
or reductions in government spending including the impact of sequestration on
U.S. government defense spending and a possible federal government shutdown if
necessary appropriations bills are not passed by Congress and signed by the
President; credit risks associated with our clients; competitive market
pressures; the availability and cost of qualified personnel; our level of
success in attracting, training and retaining qualified management personnel
and other staff employees; changes in tax laws and other government
regulations including the impact of healthcare reform laws and regulations;
the possibility of incurring liability for our business activities, including
the activities of our temporary employees; our performance on client
contracts; negative outcome of pending and future claims and litigation; and
government policies, legislation or judicial decisions adverse to our
businesses. More detailed information about these and other risks and
uncertainties may be found in our filings with the SEC, particularly in the
"Risk Factors" section of our Form 10-K and the "Management's Discussion and
Analysis of Financial Condition and Results of Operations" section of our Form
10-Ks and Form 10-Qs. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date hereof. We
assume no obligation to update such statements, whether as a result of new
information, future events or otherwise, except as required by law.
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