Kelly to enhance profitability by restructuring
MICHIGAN, UNITED STATES — Specialty talent solutions provider Kelly Solutions announced a strategic restructuring plan to refine its business model and increase organizational efficiency.
The strategy is part of Kelly’s transformative initiative launched earlier this year to enhance its EBITDA margin and foster sustainable growth.
The restructuring will realign vital resources with Kelly’s business segments, streamline corporate functions, minimize bureaucratic layers, and improve work processes.
By simplifying its operations, Kelly aims to unlock resources for growth-oriented investments. Consequently, the company has implemented a workforce reduction plan and notified impacted employees as employment law requires.
“Today marks a difficult but necessary step forward on Kelly’s journey to accelerate profitable growth,” said Kelly CEO Peter Quigley.
“These actions follow an exhaustive review of the company’s business and functional operations to determine how we can work more efficiently to improve profitability over the long term. I am confident the structural improvements we have made to Kelly’s operating model position the company to pursue new avenues of growth that will enable it to deliver greater value for customers, talent, and shareholders.”
Following the restructuring, Kelly expects immediate improvements in its EBITDA margin, with substantial progress anticipated in the latter half of 2023.
The company forecasts a restructuring charge of $7.5-$8.5 million for the third quarter of 2023. More details about the restructuring’s impact on Kelly’s transformation will be shared during the second-quarter earnings conference call scheduled for August 10, 2023.
