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Heidrick & Struggles International Inc. (NASD: HSII) today announced organizational changes designed to strengthen the company and better position it for long-term success. In addition, the company announced that its chief human resources officer has resigned.
The company plans to cut its workforce by about 10 percent and consolidate or close 13 of its smaller offices worldwide, mostly in EMEA (the Europe, Middle East and Africa region).
Meanwhile, Richard Caldera has resigned as the company's chief human resources officer. He will remain with the company until Dec. 31 to ensure an orderly transition of his duties and responsibilities.
Additionally, the company announced that Timothy Hicks has been appointed in the newly created role of managing partner of operations. He will be responsible for the company's regional operations as well as steering the human resource function. Since joining Heidrick & Struggles in 2002, Hicks has held several leadership roles within the company and has 27 years of experience in the executive search/leadership advisory industry. Moreover, S. John Kim, currently managing partner of global practices, will move to a market-facing role within the company's financial services practice.
“Our actions will allow us to focus even more sharply on driving our leadership advisory strategy, while enhancing our competitiveness and delivering value to our shareholders,” said Chief Executive Officer L. Kevin Kelly. “While the market continues to be challenging, particularly in Europe, we are adjusting to these conditions in a way that positions us for improved performance in the near term and strengthens our ability to invest in future growth.”
The company expects to record a one-time pre-tax restructuring charge of approximately $18 million during the 2011 fourth quarter. The company expects to realize $20 million to $25 million in annualized savings from the strategic initiatives.