Professional staffing provider Resources Connection Inc. (NASDAQ: RECN), which operates as Resources Global Professionals, announced that its board on Sept. 2 approved the continuation of the company’s restructuring efforts, focusing presently on its European business.
“Similar to the restructuring initiatives in the company’s North America and Asia Pacific businesses commenced in March 2020, the European restructuring plan is aimed at improving the organizational structure of the European business and its operating efficiency and more effectively aligning resources to a set of core high growth clients,” the company stated in a filing with the US Securities and Exchange Commission.
The restructuring plan affecting European operations is expected to include:
- The elimination of certain positions from the European go-to-market operations.
- Streamlining of the European leadership structure.
- Alignment of the back-office support structure and reduction in the European real estate footprint.
- With respect to employee termination actions, any proposed redundancies in the company’s workforce will be subject to informing and consulting with employees in accordance with local laws.
In connection with the restructuring activities, Resources Connection expects to incur cash and non-cash charges relating to employee terminations, lease terminations and related exit costs and contract terminations. It will disclose the estimated amounts or range of amounts expected to be incurred in an amendment to the SEC filing after it determines such amounts.
Resources Connection previously completed a restructuring of headcount and real estate in North America before the pandemic hit, which better prepared the company to operate in the current environment. CEO Kate Duchene said with its fiscal fourth-quarter earnings announcement.
The company also reported it amended a credit agreement, extending the maturity date of the obligations to Oct. 17, 2022, from Oct. 17, 2021, and modifying the commitments to eliminate the $30 million “reducing revolving commitment” and increasing the “revolving commitment” by $30 million to $120 million, among other changes.