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CDI Corp. (NYSE: CDI), a provider of information technology and engineering services and staffing, will cut 200 jobs and focus on long-term growth by combining operations and expanding internationally under a reorganization plan announced today.
The Philadelphia-based company expects revenue will increse to between $1.3 billion and $1.4 billion by 2014, up from $1.0 billion in the 12 months ended Sept. 30, 2011.
“This strategic plan will focus CDI on high-potential growth opportunities in a limited number of priority industries; selectively expand our geographic footprint to meet the global needs of core clients and provide a clear vision and improved organizational structure to make CDI a market-leading engineering and technology solutions provider,” said President and CEO Paulett Eberhart.
The reorganization will:
- Organize the company into three geographic regions — the Americas; Europe, the Middle East and Africa; and Asia Pacific.
- Combine CDI’s engineering solutions and IT solutions businesses into a “global engineering and technology solutions” business line.
- Create a professional services staffing service line by combining CDI’s staffing and advisory services, including AndersElite.
- Focus the company on five industries, including oil and gas, chemicals, aerospace, industrial products and high tech.
- Maintain Management Recruiters International as a separate entity. MRI is a staffing franchise business that focuses on mid-level and senior-level permanent placement recruitment and staffing.
- Centralize support functions into a global model.
Most of the layoffs are expected to happen this month. CDI forecast a pre-tax charge of approximately $8.0 million to $9.0 million for the restructuring, including approximately:
- $6.0 million for employee severance.
- $1.0 million for office closures.
- $1.5 million for noncash asset write offs.
CDI expects pre-tax savings of approximately $22 million in 2012. With the savings, CDI expects to make select employee hires in 2012, which will cost approximately $3.5 million; upgrade technology; and restore employee benefits that were reduced during the financial crisis.
CDI ranks No. 21 on Staffing Industry Analysts’ 2011 list of largest U.S. staffing firms with U.S. staffing revenue of $534 million in 2010.