Parexel to restructure
Chairman, CEO and the Corporate Vice President and Interim CFO of Parexel International has approved a plan to restructure its operations to improve the productivity and efficiency of the company, simplify the organization and streamline decision-making, thereby enhancing client engagement. The restructuring initiative is company-wide.
These actions are expected to result in pre-tax charges in the range of $25 million to $35 million, all of which are anticipated to be cash expenditures. The company expects to record a pre-tax charge in the third quarter of the fiscal year ending June 30, 2017 in the range of $20 million to $27 million, with the remainder of the charges to be incurred by the end of the fiscal year ending June 30, 2018. The charges will include approximately $24 million to $32 million in employee separation costs and approximately $1 million to $3 million in other costs.
The company anticipates completing restructuring activities by the end of Fiscal Year 2018, and expects the charges to result in annual pre-tax savings of approximately $7 million to $10 million over the course of Fiscal Year 2017 and approximately $30 million to $40 million on an annualized basis when fully completed.