EXHIBIT 99
HEIDRICK & STRUGGLES
INTERNATIONAL
NEWS
FOR IMMEDIATE RELEASE CONTACT: Eric Sodorff (media)
- --------------------- 312-496-1613 or esodo@h-s.com
Barry Hollingsworth (analysts)
312-496-1723 or bhollingsworth@h-s.com
Martin Ellis (UK/Europe media)
+44 (0) 7767 203089
HEIDRICK & STRUGGLES REALIGNS ITS WORKFORCE IN RESPONSE TO ECONOMIC CONDITIONS
AND FUTURE STRATEGIC DIRECTION
CHICAGO (June 20, 2001)-Heidrick & Struggles International, Inc. (Nasdaq: HSII),
the world's premier executive search and leadership consulting firm, today
announced a strategic reduction of its workforce in order to adjust to current
economic conditions, while retaining the resources necessary to capitalize on
growth opportunities when the economy recovers.
As a result of this workforce reduction, the company will incur a one-time
charge of between $9 million and $10 million - or $0.25 to $0.28 per diluted
share - for severance and related costs. The majority of the charge will be
taken in the second quarter, with the remainder taken in the subsequent several
quarters. The actions will affect approximately 300 people, or 13 percent of the
firm's global workforce, and will result in annual cost savings of approximately
$30 million to $35 million.
There has been a cooling of demand for executive search and leadership
consulting services because of the economic slowdown in the United States and
the early signs of a slowdown in the rest of the world. The company presently
anticipates that second quarter 2001 revenue will be at the low end of the
previously estimated $125 million to $135 million range. By reducing its global
workforce, the company's goal is to balance the long-term needs of the
organization with the short-term realities of a cost structure not fully
supported by the current economic environment.
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"Unfortunately, the U.S. economy is not improving and, in fact, we are now
seeing some softening in Europe as well. While we had hoped to avoid making
staff reductions, it is clear that we now must make some adjustments to our cost
structure. These changes have been made strategically, and we will use this
opportunity to continue positioning the company for the dramatic changes we
expect over the next few years in the executive search business model," said
Patrick S. Pittard, Chairman, President and Chief Executive Officer of Heidrick
& Struggles International (HSI Group). "Let me emphasize that these actions do
not mean we have abandoned our long-term strategy of helping our clients build
world-class leadership teams, or our growth ambitions. You will continue to see
us adding talent selectively and making acquisitions when they make good
business sense."
Webcast of Investor Call Available
To review these company-wide changes, Heidrick & Struggles will provide a real-
time investor call webcast on Thursday, June 21, at 9:00 a.m. (Central Daylight
Time). The webcast will feature remarks by Pittard, as well as David C.
Anderson, President and CEO of Heidrick & Struggles Executive Search; Piers
Marmion, Chief Operating Officer and President-International of Heidrick &
Struggles Executive Search; and Donald M. Kilinski, Chief Financial Officer. The
live webcast will be available online at www.heidrick.com. A replay will be
available for up to 30 days following the investor call.
About Heidrick & Struggles International, Inc. (HSI Group)
Heidrick & Struggles International, Inc. (HSI Group) is the world's premier
provider of executive-level search and leadership consulting services. More than
1,000 Heidrick & Struggles professionals operate from offices in over 75
locations throughout North and South America, Europe, the Middle East, Africa
and Asia Pacific. For nearly 50 years, our core business - Heidrick & Struggles
Executive Search - has specialized in chief executive, board member and senior-
level management assignments for a broad spectrum of clients: multi-national
corporations, mid-cap and start-up companies, nonprofit entities, educational
institutions, foundations, associations and governmental units. We are expanding
our range of complementary services to offer solutions to senior management
teams for their human capital needs. LeadersOnline, our Internet-enhanced
recruiting business, serves clients who seek the next generation of corporate
leaders. We are capitalizing on our access and influence with the highest levels
of our client organizations through Heidrick & Struggles Ventures, our unit
responsible for other complementary businesses, alliances and investments. For
more information about HSI Group, visit our web site at www.heidrick.com.
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Safe Harbor Statement
This news release contains forward-looking statements. The forward-looking
statements are based on current expectations, estimates, forecasts and
projections about the industry in which we operate and management's beliefs and
assumptions. Forward-looking statements may be identified by the use of words
such as "expects," "anticipates," "intends," "plans," "believes," "seeks,"
"estimates," and similar expressions. Forward-looking statements are not
guarantees of future performance and involve certain known and unknown risks,
uncertainties and assumptions that are difficult to predict. Actual outcomes and
results may differ materially from what is expressed, forecasted or implied in
the forward-looking statements. Factors that may affect the outcome of the
forward-looking statements include, among other things, our ability to attract
and retain qualified executive search consultants; a continuing economic
downturn in the United States or a material economic downturn in Europe or
elsewhere, or social or political instability in overseas markets; bad debt
write-offs far in excess of allowances for doubtful accounts; continued
increased acceptance of online recruiting; losses in our venture capital
investments; an inability to control expenses; and delays in the development
and/or implementation of new technology and systems. We undertake no obligation
to update publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.