Information services provider McGraw-Hill Companies, US, has announced that it has restructured a limited number of business operations and corporate functions in the fourth quarter of 2008. With this move, the company seeks to serve its markets more efficiently in the current economic environment while positioning itself for future growth.
In connection with these actions, McGraw-Hill incurred a restructuring charge of $26.3 million, pre-tax, in the quarter. This consisted mostly of employee severance costs related to a workforce reduction of approximately 375 positions across the company. The total restructuring charge after tax is $16.4 million, or $0.05 per diluted share of fourth quarter 2008 earnings.
The actions taken in the latest quarter are expected to help the company focus its resources on more profitable areas of business while streamlining its operations to serve customers in a more cost-effective manner. When combined with the actions announced in the second and third quarters of 2008, McGraw-Hill will incur restructuring charges for the full year of 2008 totalling $73.4 million, pre-tax, ($45.9 million after-tax) or $0.14 per diluted share.
