Forrester Research, Inc. (Nasdaq: FORR) today announced a workforce reduction which is expected to result in the elimination of approximately 126 jobs, or about 22% of its workforce worldwide. The company also reiterated its fourth-quarter 2001 guidance.
“Last year was a challenging one for most companies, and Forrester was no exception,” said George F. Colony, chairman of the board and chief executive officer. “The difficult decision to reduce our workforce reflects the continued economic downturn and the sustained weakness in the technology sector.
“This move continues our broad effort to prepare the company for the future,” continued Colony. “We vertically aligned our sales force last July to offer improved client service and product customization. In October, we reorganized the company into four operating groups to accelerate innovation and enhance client relationships. Finally, Forrester is developing innovative ways to advance research to its clients. We expect to announce information about these plans during the next several weeks. All of these changes are part of an effort to make our business more efficient while maintaining or improving the level of service to our clients.”
For the current first quarter of 2002, the company expects to record a one-time charge in the range of $4.0 million to $6.0 million related to the reorganization and workforce reduction. On an annualized basis, associated savings are estimated to be in the range of $18.0 million to $20.0 million.
For the fourth quarter ended December 31, 2001, Forrester reiterates its revenue guidance of approximately $33.0 million to $35.0 million and diluted earnings per share of approximately $0.20 to $0.22. These expected results are consistent with the company’s previous guidance.
The company expects to report its fourth-quarter and full-year 2001 financial results and plans to provide guidance for 2002 on January 30, 2002.