Heidrick & Struggles (NASD: HSII) on Friday announced a restructuring to reduce overall costs and improve efficiency. It will include pre-tax charges of $15 million to $18 million in the fourth quarter. The company also plans a noncash impairment charge of $6 million to $12 million to write off the carrying value of goodwill and intangible assets in its leadership consulting business. In addition, the company said the leadership consulting business will be combined with its culture shaping business.

The restructuring at the Chicago-based executive search provider will include a workforce reduction, elimination of two executive officer roles, closing of three offices and the acceleration of some expenses.

“Since assuming my role in July, I have noted on our quarterly calls that we were in the process of examining every aspect of our organizational and cost structure to support investments toward our vision of becoming the world’s most trusted advisory firm as well as to improve the firm’s profitability,” Heidrick President and CEO Krishnan Rajagopalan said. “Today’s announcement of a restructuring is an important step forward.”

Annual cost savings from the restructuring is expected to range from $11 million to $13 million.

“The market for executive search continues to be robust and we have positive momentum as a firm. Fourth quarter 2017 consolidated net revenue was at the high end of the guidance we provided on October 26, 2017 of between $150 million and $160 million,” Rajagopalan said. “In 2018, we will continue our transformation journey to become the premier advisor on executive search, leadership assessment and development, team and organization performance and culture shaping.”

Finally, Heidrick reported it expects to incur a tax expense in the range of $10 million to $25 million related the valuation of its US deferred tax assets.

“The write-down of the value of the assets is a result of the reduction in the corporate income tax rate from 35% to 21%,” according to the company. “Additionally, because provisions in the new legislation will likely restrict the use of foreign tax credits going forward, the company will recognize an additional tax-related charge of approximately $9 million to establish a valuation allowance for its foreign tax credit carry forward.”