Harris Interactive(R) Announces Restructuring Yielding Cost Savings of Approximately $10 Million
ROCHESTER, N.Y.--(BUSINESS WIRE)--Mar. 13, 2009--
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.
Source: Harris Interactive Inc.
Harris Interactive Inc.
Vice President, Investor
Relations and External Reporting
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