Engineering and technology staffing firm CDI Corp. (NYSE:CDI) said Thursday that it would cut around 200 jobs and take a fourth-quarter charge in order to cut costs and rationalize its business.
Shares fell two percent to $12.72 Thursday morning.
CDI said it expects a pre-tax restructuring charge of about $8 to $9 million in the fourth quarter of 2011, related to employee severance costs and other organizational changes resulting in pre-tax cost savings of approximately $22 million in 2012.
CDI's president and chief executive officer, Paulett Eberhart, said: "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."
The company said organic revenues are expected to reach $1.3 to $1.4 billion by 2014 with operating profit margins of 3.5 to 4.5 percent.
Changes announced by CDI include creating a new client engagement model in the Americas, Europe, Middle East and Africa and Asia Pacific regions; the reorganization of the engineering solutions and IT solutions services into a global engineering and technology solutions segment; the combination of CDI's staffing and advisory services into a professional services staffing segment; and the centralization of support functions and processes into a global model to optimize execution and manage costs.
CDI also said it will prioritize investments in five select industries including oil and gas, chemicals, aerospace, industrial products and hi-tech.
In October, CDI said that third-quarter earnings jumped 67 percent as revenue grew by 9.3 percent.
CDI supports clients in more than 20 industries and has about 10,000 employees.