UPDATE 1-Heidrick & Struggles cuts workforce by 12 pct

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Jan 15 (Reuters) - Executive search firm Heidrick & Struggles International Inc (HSII.O) said it would cut 12 percent of its workforce and focus on leadership advisory services.

The company, which is one of the two publicly traded executive search firms in United States, said it would take a charge of $20 million for restructuring and expects to save about $31 million in the next one year.

Heidrick & Struggles said it aims at increasing leadership advisory fees to form about 40 percent or more of their total revenue in the next five years.

"The executive search business has rigidly adhered to a half-century old business model, but our clients have let us know they want more than just search," said Chief Executive Officer Kevin Kelly.

Robert W. Baird analyst Mark Marcon said that over 35 percent of the company's business comes from various forms of financial services.

"Virtually every area of financial services has been hit during this downturn on virtually a global basis. This obviously makes the demand environment quite difficult," he added.

Shares of the company closed at $20.14 Thursday on Nasdaq.

For alerts, please click on [ID:nWNAB0403] (Reporting by Amulya Nagaraj in Bangalore; Editing by Anil D'Silva)