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Kelly to cut headcount, close branches in restructuring plan

October 29, 2014

Kelly Services Inc. (NASD: KELYA) announced a management simplification restructuring plan to close approximately 50 US branches and cut global headcount by 100 permanent positions, including several leadership positions, according to a filing with the US Securities and Exchange Commission.

The estimated headcount reduction includes 40 positions related to the Americas segment; five positions in OCG; and 55 positions at its corporate headquarters.

Kelly’s board approved the plan on Sept. 15, and it’s expected to be complete by the end of the fourth quarter.

Restructuring costs were $3.7 million in the third quarter consisting entirely of severance costs. Total cost for the plan is estimated to be between $9.0 million and $10.0 million with charges in the fourth quarter estimated at between $5.3 million and $6.3 million that will include severance as well lease termination costs.

Kelly is the fifth-largest US staffing firm and seventh-largest global staffing firm.

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