Professional staffing and consulting provider Resources Connection (NASDAQ: RGP) reaffirmed revenue guidance for its fiscal second quarter, which ended in November, and announced a workforce reduction in a regulatory filing on Dec. 6.

RGP expects the reduction to bring cost savings of between $4 million and $5 million in its second half of its fiscal year, which ends in May. The savings will be between $8 million and $10 million annually on a go-forward basis.

Restructuring charges of between $2.5 million and $3.0 million are expected to be recognized in its fiscal third quarter, which ends in February. They will consist primarily of cash charges for one-time employee termination benefits.

Workforce reductions will be mostly complete by the end of the third quarter of 2025, according to the company. Substantially all of the charges will be recognized and paid during the third quarter.

RGP said guidance for the second quarter of 2025 for revenue remains at between $135 million and $140 million, a year-over-year decline of between 14.2% and 17.2%.

Second-quarter gross margin is expected to be in the range of 36% to 37%.

RGP will report second-quarter 2025 results on Jan. 2, 2025.