Kelly Services Inc. (NASDAQ: KELYA, KELYB) today announced a strategic restructuring aimed at accelerating profitable growth. The effort includes a workforce reduction.

The restructuring will result in EBITDA margin expansion and substantial improvement in the second half of this year and beyond, according to the company.

It’s a difficult but necessary step forward, Kelly President and CEO Peter Quigley said in a press release.

“These actions follow an exhaustive review of the company’s business and functional operations to determine how we can work more efficiently to improve profitability over the long term,” Quigley said. “I am confident the structural improvements we have made to Kelly’s operating model position the company to pursue new avenues of growth that will enable it to deliver greater value for customers, talent and shareholders.”

The company expects to take a restructuring charge of between $7.5 million and $8.5 million in the third quarter, and Kelly Services plans to release more information when it announces second-quarter earnings on Aug. 10.

Employees affected by the workforce reduction have been notified, and the company said they are eligible for severance, benefits and outplacement services. Kelly is not announcing the number of employees affected at this time.

“The reductions were a strategic decision aimed at optimizing our operations and ensuring long-term sustainability,” the company said in a statement to SIA. “The restructuring process was conducted after careful consideration and evaluation of various factors, including the evolving needs of our business and industry.”

Share price and market cap

KELYA shares were down 5.46% to $18.01 as of 1:54 p.m. Eastern time; they were 20.17% below their 52-week high, according to FT.com. The company had a market cap of $685.2 million.