Korn Ferry International Inc. (NYSE: KFY), a provider of executive search and other services, plans a headcount reduction and a reduction in office space as part of a plan to realign its workforce with business needs. The headcount reduction will affect less than 5% of the company’s workforce, it said in a filing with the US Securities and Exchange Commission.

The reductions should reduce Korn Ferry’s annualized cost base by approximately $45.0 million to $55.0 million — after taking into account new hires in connection with rebalancing the workforce.

Korn Ferry estimates the reductions will result in a pre-tax charge of between $45.0 million and $50.0 million. The charge will include severance and related employee benefit payments along with lease termination costs. The charges are expected to include $30.0 million to $35.0 million in cash expenditures, the majority of which will be paid during the remainder of the company’s 2023 fiscal year ending in April.

The cost-savings plan began on Jan. 1, and the company noted it is selling larger integrated solutions in a world where there are shifts in global trade lanes and persistent inflationary pressure.