“We recognized $5.2 million of net restructuring charges during the fourth quarter and $9 million for the year in connection with the approved restructuring plans. We expect to continue our productivity and SG&A initiatives to further improve our global cost structure and delivery model during 2015, which will require additional restructuring costs.” – Quintiles CFO Kevin Gordon

DURHAM, N.C. – Quintiles (NYSE: Q) delivered a quarterly financial report Thursday that topped Wall Street expectations and projected continued growth in 2015, but in a conference call Chief Financial Officer Kevin Gordon warned that “restructuring” is coming.

This will be the third consecutive year  that Quintiles has cut some jobs even as it looks to fill some 1,200 positions and increased its headcount by some 4,000 in 2014, or 13 percent, to more than 32,000.

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“We’re also a job creator, with thousands joining us, balanced around the world between the Americas, Europe and Asia,” said CEO Tom Pike during the call. “We continue to believe the market for our services is strong and growing.”

Gordon noted what Quintiles had spent on restructuring charges ($9 million) in 2014 and added that productivity and other initiatives “will require additional restructuring costs” this year.

In an SEC filing, Quintiles reported that it cut 250 jobs in 2014, some 400 in 2013 when the company returned to the public stock markets through an IPO, and 280 jobs in 2012.

Phil Bridges, senior director of corporate communications, said the cuts will be spread over two years.

“Quintiles routinely evaluates its resource needs and makes adjustments in line with our overall strategy,” he said in a statement.

“It is important to note that the restructuring details noted in our regulatory filings are for 2015 and 2016, and are global figures.   

“To provide proper context, we currently have more than 1,200 open positions worldwide for which we are recruiting.”

Quintiles would not “provide geographic detail on its resourcing plans,” he added.

Quintiles has some 2,900 employees in North Carolina, including 2,500 in the Triangle.
 
SEC Filing
 
In the filing, Quintiles noted:

“During 2014, we recognized $9.0 million of restructuring charges, net of reversals for changes in estimates which was primarily related to our 2014 restructuring plans to better align our resources with our strategic direction, which resulted in a reduction of approximately 250 positions. We believe that these plans will result in annualized cost savings of approximately $20.0 to $25.0 million.

“During 2013, we recognized $14.1 million of restructuring charges, net of reversals for changes in estimates which was primarily related to our February 2013 restructuring plan to migrate the delivery of services and to reduce anticipated overcapacity in selected areas, which resulted in a reduction of approximately 400 positions. We believe that this plan has resulted in annual cost savings of approximately $15.0 to $20.0 million.

“During 2012, we recognized $18.7 million of restructuring charges, net of reversals for changes in estimates which was primarily related to our May 2012 restructuring plan to reduce staffing overcapacity and to rationalize non-billable support roles, which resulted in a reduction of approximately 280 positions, primarily in Europe. We believe that this plan has resulted in annual cost savings of approximately $15.0 to $25.0 million.”