US-based international executive recruitment firm Heidrick & Struggles (HSII: NSQD) yesterday reported net revenue for the fourth quarter ending 31 December 2017 of $169.4 million, an increase of 6.0% or 3.8% in constant currency.

During the fourth quarter, the company recorded restructuring charges of $15.7 million related to strategic actions taken to reduce overall costs and improve operational efficiencies. The charges consist of employee-related costs, including severance, associated with a global workforce reduction of approximately 14%, professional services fees, and expenses associated with consolidating and closing three of its offices, one in each region.

The impairment and restructuring charges were reflected in the operating loss of $18.8 million in the fourth quarter.

The group also reported full year revenue of $621.4 million, up 6.7% and 6.9% in constant currency.

“Our record net revenue in 2017 was driven by the growth of Executive Search in all three regions and by Leadership Consulting,” said Krishnan Rajagopalan, Heidrick & Struggles President and Chief Executive Officer. “We also made significant strides in lowering the run rate of our general and administrative and business support expenses. These actions allow us to shift the focus of our capital to investments that support the growth of our businesses, including technology, while helping the firm achieve improved operating margins on a more sustained basis.”

Fourth quarter revenue was broken down as follows.

The group stated that the year-over-year decline in Leadership Consulting mostly reflects the timing of large projects and the resulting quarterly variability of results.

Heidrick & Struggles also announced that beginning 1 January 2018, the Leadership Consulting and Culture Shaping businesses were combined and will be reported as one segment called Heidrick Consulting.

Looking ahead, the company is forecasting first quarter 2018 consolidated net revenue of between $150 million and $160 million.

“Market demand for executive search and leadership advisory services remains strong and we intend to improve on the record revenue we achieved in 2017,” Rajagopalan said. “The strategic actions that we have taken position us to execute our plan to drive profitable growth and operating excellence. The launch of Heidrick Consulting earlier this month directly complements our core Executive Search business as we help clients successfully navigate volatile and fast-changing markets.”

In trading today, Heidrick & Struggles International shares closed at $25.45, down 0.20% on the day and 6.61% below its 52-week high of $27.25, set on 31 January 2018. Based on its current share price the company has a market value of $478.10 million.