Benzinga | Oct 22, 2020 04:29PM EDT

Knoll On Oct. 16 Approved Plans To Further Reduce Its Operating Expenses; Expects To Reduce Its Workforce By About 200 Positions And Close Five Of Its North American Office Showrooms, Sees ~$23M In Annualized Savings

On October 16, 2020, Knoll, Inc. (the "Company") approved plans to further reduce its operating expenses in response to the economic challenges and uncertainty resulting from the COVID-19 pandemic and its impact on the Company's business. As part of this restructuring, the Company expects to reduce its workforce by approximately 200 positions and close five of its North American Office showrooms. In connection with these actions, the Company estimates that it will incur approximately $10 million of cash charges which include separation payments and other employee termination expenses of approximately $5 million, and facility closure costs of approximately $5 million. The majority of the employee-related expenses are expected to be recognized in the fourth quarter of 2020, with the remaining facility costs being recognized primarily in the first quarter of 2021. The Company expects the plan to be fully executed by the end of the first quarter of 2021. The Company estimates these actions will result in annualized savings of approximately $23 million.