DHI Group Inc.
07/01/2024 | Press release | Distributed by Public on 07/01/2024 14:04
Costs Associated with Exit/Disposal Form 8 K
Item 2.05 Costs Associated with Exit or Disposal Activities
On July 1, 2024, DHI Group, Inc. (the "Company") announced an organizational restructuring intended to streamline its operations, drive business objectives, and reduce operating costs. This included a reduction of the Company's current workforce by approximately 7%. The restructuring is expected to generate annual cost savings of approximately $4 million to $6 million.
The Company estimates that it will incur approximately $1.1 million in cash charges related to employee severance and benefits and expects all of the $1.1 million to be future cash expenditures. All charges are expected to be recognized in the third quarter of 2024 while the related cash payments are expected to be substantially completed by the end of 2024.
The actions associated with the organizational restructuring are expected to be substantially complete by the end of the third quarter of 2024, subject to local law and consultation requirements.
The estimates of the charges and expenditures that the Company expects to incur, as well as the estimated cost savings and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from estimates.
In addition, the Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur in connection with the restructuring.
Forward-Looking Statements
This Current Report on Form 8-K may contain "forward-looking statements" about the Company's future expectations, plans, outlook, projections and prospects. Such forward-looking statements can be identified by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," "proposes" and similar expressions. Forward-looking statements contained in this Current Report on Form 8-K include, but are not limited to, statements about the expected streamlining of the Company's operations to drive business objectives, the expected reduction in operating costs, the expected cost savings, the expected benefits of and timing of completion of the restructuring and the expected costs and charges of the restructuring. Although the Company believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These risks and uncertainties include, among other things, the risk that the restructuring costs and charges may be greater than anticipated; the risk that the Company's restructuring efforts may adversely affect the Company's internal programs and the Company's ability to recruit and retain skilled and motivated personnel, and may be distracting to employees and management; the risk that the Company's restructuring efforts may negatively impact the Company's business operations and reputation with or ability to serve customers; the risk that the Company's restructuring efforts may not generate their intended benefits to the extent or as quickly as anticipated. Readers are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements speak only as of the date of the document in which they are contained, and the Company does not undertake any duty to update any forward-looking statements, except as may be required by law.