Headquarters restructuring to accompany turnaround

CONTEXT

• Listed company – Paris & New York – with revenues of US$ 20bn & 140,000 employees
• Business on the verge of insolvency; new CEO decides – in emergency mode – to embark on a massive restructuring program, including full revamping of the HQ

OBJECTIVES

• To secure turnaround and speed up the radical HQ cost-cutting plan, under Group CFO leadership
• To realign central resources with the reduced portfolio scope (in anticipation of divestitures)

TASKS

• Assessment of the detailed roles & responsibilities of personnel (#600)
• Establishment of a streamlining plan for each corporate function in view of the new portfolio scope and revised efficiency standards
• New structure target set-up & migration schedule and costs (evaluation & budgeting)

OUTCOME

• 40% savings in corporate headcount & overheads (savings of €140m)
• Full redesign of a reunified governance structure, drastically reducing complexity in the chain of command