CDI to lay off 200 and Auxilium changes CEOs
CDI announced a strategic reorganization that includes job cuts, while Malvern's Auxilium hired a new CEO effective immediately.
CDI, known as a provider of contract technical staffing, has announced details of how the Philadelphia company will reorganize its farflung operations.
The plan, released by new CEO Paulett Eberhart, calls for CDI to cut its staff employment by about 200 people. As a result, the company will take a charge of $8 million to $9 million in the fourth quarter for employee severance and other costs.
But Eberhart's plan involves a new organizational structure under which CDI will report its revenue and profits geographically and by service lines. CDI emphasized that it intends to maintain Management Recruiters International, the business that focuses on mid-level and higher permanent placement recruiting and staffing, as a separate unit.
CDI intends to combine its currently separate engineering and information technology business units, and place all of its other staffing and advisory operations under a Professional Services Staffing organization.
Also, the company wants to focus and invest its investments on five industry sectors: oil and gas, chemicals, aerospace, industrial products, and high technology. CDI currently services clients in 20 industries.
CDI shares were down 18 cents early this afternoon, to $12.82.
Another local company with a big change is Auxilium Pharmaceuticals, which named a new CEO effective immediately. The Malvern specialty biopharmaceutical company hired Adrian Adams, the former CEO of Neurologix.
Adams replaces Armando Anido, who "agreed to step down" after discussions with the board of directors, the company said in a statement. Anido also resigned from the board.
Auxilium has two products on the market: Xiaflex, an injectable treatment for a rare condition called Dupuytren's contracture, in which a patient cannot straighten his or her fingers; and Testim, a testosterone replacement therapy.
Revenues for the nine months ended Sept. 30 were $191.04 million, up from $149.60 million. However, the company remains unprofitable reporting a net loss of $21.1 million, or 44 cents per share, compared with a net loss of $34.83 million, or 74 cents per share, for the nine months ended Sept. 30, 2010.
Shares of Auxilium were up 95 cents early this afternoon, to $18.35.