RTTNews | Oct 1, 2020 08:18AM EDT

08:18 Thursday, October 1, 2020 (RTTNews.com) - Houghton Mifflin Harcourt (HMHC) announced a strategic restructuring which includes both labor-related and non-labor expense reductions. The labor-related reductions involve organizational changes resulting in a 22% reduction of the company's workforce. Non-labor reductions include a reduction of manufacturing costs as the business shifts from print to digital offerings, a reduction in service delivery costs, and a streamlining of back office costs.

Houghton Mifflin Harcourt expects reducing total expenditures by approximately $95 to $100 million per year. Total one-time charges associated with the transformation, including charges resulting from the Voluntary Retirement Incentive Program, are estimated to be in the range of $34 to $36 million.

The company projects 2021 free cash flow break even billings level to be in a range of $1.02 and $1.07 billion, well below the estimated 2020 break even billings range of $1.23 to $1.28 billion.

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