Harris Interactive® Announces Restructuring Yielding Cost Savings of Approximately $10 Million
March 13 2009 - 8:45AM
Business Wire
Harris Interactive (NASDAQ: HPOL) today announced a further
reduction in force that will align its cost structure with
revenues, and yield approximately $10 million in annualized cost
savings and other non-labor savings. This amount is in addition to
annual savings of $9.5 million resulting from the headcount
reduction and reorganization previously announced and implemented
on December 17, 2008.
These headcount reductions were partly driven by a new
streamlined and client-focused organization structure implemented
over the past few months as part of a new strategic plan, creating
integrated client teams that deliver industry, solutions, and
project management expertise. This integrated structure enhances
the organization�s ability to meet client requirements more
efficiently in a coordinated and seamless fashion, replacing a less
efficient organization structure with duplicative staffing. In
addition, newly formed Centers of Excellence will strengthen the
Company�s ability to develop innovative and forward-looking
products and services.
Kimberly Till, President and CEO of Harris Interactive,
commented that �In this difficult economic market, we are committed
to efficiently managing the Company and organizing our resources to
best support our clients. This new structure enables us to deliver
on our commitments to clients and bring them a deeper level of
insight and innovation, while also right-sizing Harris and aligning
our resources with client requirements. We have developed a clear
strategy and differentiated value proposition which we are now
implementing for the benefit of our clients. We are putting the
right people in the right places to make sure we can successfully
implement our strategy.� Till added, �Now we have a more flexible
organizational structure combined with a management mandate to act
proactively to align our resources and cost structure to serve our
clients in an efficient and profitable manner.�
The Company reduced U.S. employee headcount by approximately 90
people, or about 16% of its total U.S. full-time workforce. The
headcount reductions involved the Company�s research, project
management, operations, marketing, sales, and corporate functions
throughout its U.S. locations. The Company expects that the
associated severance charges will not exceed $2.8 million. The
severance charges will be recorded in the Company�s results of
operations for the third quarter of fiscal 2009, however, cash
payments will continue to be made through March 2010. These
reductions are in addition to the restructurings previously
announced in October and December 2008. Till noted, �These
restructurings, taken together, align Harris� cost structure to the
reality of the market with an eye toward a sustaining future for
Harris.�
About Harris Interactive
Harris Interactive is a global leader in custom market research.
With a long and rich history in multimodal research, powered by our
science and technology, we assist clients in achieving business
results. Harris Interactive serves clients globally through our
North American, European and Asian offices and a network of
independent market research firms. For more information, please
visit www.harrisinteractive.com.
Safe Harbor Statement
This media release includes statements that may constitute
forward-looking information. We caution you that these
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
discussed. Additional detailed information concerning a number of
factors that could cause actual results to differ is readily
available in the "Risk Factors" section of the most recent Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q filed with
the Securities and Exchange Commission pursuant to the Securities
Exchange Act of 1934.
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