Randstad Holding has provided an update on its plans for a new organizational structure in the Netherlands originally announced a month ago.

Annual savings as from Q1 2015 are estimated at between €20 million and €23 million, for which a provision will be taken in Q3 and Q4 2014 of around €22 million in total. The company estimates that payback is achievable within one year. The cost savings will be achieved through the creation of one Dutch management team and by streamlining back-office processes and support centres. The company expects to complete this process by the end of 2014.

Additional savings could also derive from the restructuring of Randstad’s professional staffing businesses in the Netherlands which also forms part of the company’s new organizational plans, however, detailed plans for the new organisational structure are still pending approval of the Works Council.

The company also suggests that further announcements will be made relating to quality improvements and cost savings over time as several countries have done similar back-office analyses, like Belgium in 2013, and Spain and Italy when they went through merging activities with USG.