H and R Block Inc Announces Strategic Realignment Of Organization And Board Change

H and R Block Inc announced a broad strategic realignment to create a more cohesive end-to-end client experience, to drive better efficiency and accountability throughout the organization, and to align its resources to balance long-term client and revenue growth. Overall, the Company expects to realize net annualized savings of $85 to $100 million by the end of fiscal year 2013 as a result of the strategic realignment. As part of the measure, the Company is offering a voluntary separation program to eligible employees throughout the organization. The Company will review each application for voluntary separation on an individual basis. In the event the Company does not achieve the targeted number of separations from the voluntary program, involuntary separations will follow. Overall, the Company plans to eliminate approximately 350 full-time positions throughout its Kansas City headquarters and nationwide field organization. The Company also will streamline its seasonal workforce and close approximately 200 underperforming Company-owned offices. The Company also announced an organizational realignment, including the formation of U.S. Client Services. The four executives leading this unit will all directly report to Cobb. The Company also announced it has retained Crist|Kolder Associates to lead the search for a new Chief Financial Officer (CFO). The Company's current CFO, Jeff Brown, will remain with the Company and continue to serve as CFO during the search for a successor.