Mike Nartker
WC Monitor
9/19/2014

CH2M Hill is looking to reduce its workforce by approximately 1,200 people out of 26,000 employees as part of a new restructuring plan that the company said last week is intended to generate approximately $100 million in “operational efficiencies.” The restructuring will entail “a voluntary retirement program, workforce reductions and facilities consolidations,” and is set to be implemented through early 2015, CH2M Hill said in a filing with the Securities and Exchange Commission. “These activities are expected to result in pre-tax charges of up to $120 million in the aggregate.  In addition, as a result of rationalization of certain lines of business in connection with these restructuring efforts, CH2M HILL also expects to record impairments of goodwill and/or other intangible assets ranging from $30 to $80 million in the aggregate.  CH2M HILL expects these restructuring efforts will result in annualized cost savings of $100 to $120 million,” the filing states.

The restructuring is necessary, according to a CH2M Hill announcement, because “over the past several years, the corporate structure and overhead of the company has grown in anticipation of a future state that did not materialize. In response, the company is right-sizing its overhead structure in all global operating units to align with the company’s strategy.” In the announcement, CH2M Hill CEO Jacqueline Hinman said, “From time to time, good companies adjust their businesses to the needs of their clients, their markets, and their aspirations. We’ve done this ourselves many times over the years.” She added, “We’re staying true to our values, and channeling the courage and passion our founders had for building a unique company, run by its employees, into the work ahead so we can continue to deliver on our purpose:  to lay the foundation for human progress by turning challenges into opportunities.”