Firm says its overheads are too big and were designed for 鈥渁 future state that did not materialise鈥�
US engineering giant CH2M Hill is to slash 1,200 jobs worldwide as part of a $120m (拢74m) restructure.
In a report to the US Securities and Exchange Commission last week, the firm said that it was seeking to 鈥渞educe costs鈥� because 鈥渢he corporate structure and overhead of the company has grown in anticipation of a future state that did not materialise鈥�.
It said: 鈥淚n response, the company is right-sizing its overhead structure in all global operating units to align with the company鈥檚 strategy.鈥�
CH2M Hill said the restructuring would entail a voluntary retirement programme for US employees, workforce reductions and consolidation of facilities.
The engineer said it would cut around 5% of its global workforce of 26,000 staff, equating to around 1,200 jobs.
The firm also said that it would make goodwill writedowns of between US$30m (拢19m) and US$80m (拢50m).
It said the restructuring would result in 鈥渞enewed emphasis on client service and sales, stronger focus on core markets, services and geographies and a right-sized office footprint鈥�.
It also said it would take 鈥渁 more disciplined approach to risk mitigation and project delivery鈥�.
CH2M Hill chief executive Jacqueline Hinman (pictured) said the firm was 鈥渁djusting its businesses to the needs of their clients, their markets, and their aspirations鈥�.
She added: 鈥淲e continue to win significant new work and deliver excellent work for our clients every day. We intend to retain our industry-leading position and provide long-term, sustainable growth that benefits our clients, employees and stockholders.鈥�
The restructuring will take place in 2014 and early 2015.
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