FTI Consulting said it will lay off about three percent of its 3,800-staff workforce and take a $28M charge in the second quarter as it streamlines offices in a bid to cut costs.
FTI said 115 employees were notified by June 29 of termination.
“The majority of affected employees were employed in the two business segments most impacted by current economic conditions,” the company said in a statement, which cited “current business demands and global macro-economic conditions” for the moves.
The company said it will reduce excess real estate capacity amid the layoffs but did not specify which two units will be affected. FTI’s five business units include strategic communications (formerly FD), corporate finance/restructuring, technology, economic consulting, and forensic/litigation consulting.
FTI did not return an inquiry from O'Dwyer's about the cuts' impact on strategic communications. Geoffrey Pelham-Lane, president of FTI's global strategic communications unit, is leaving the firm at the end of the month.
Technology consulting and strategic communications were the two units which posted declines in the first quarter of -2.9% and -2.7%, respectively. Overall FTI revenues were up 9.2% to $395.2M for Q1. It reports Q2 results on Aug. 2.
FTI said the cuts will save about $14M over the rest of 2012. It also expects additional real estate consolidation during the third quarter.
Fiscal year 2011 revenues were $1.57B.