HMHC - Houghton Mifflin Harcourt rallies on strategic restructuring

In order to accelerate its digital transformation and align cost structure with its digital first, connected strategy, Houghton Mifflin Harcourt (HMHC) +9.8% PM, announced a strategic restructuring enabling HMH to support teachers and students with digital first, connected solutions that drive successful outcomes in remote, face-to-face and hybrid learning environments."The actions we're taking are intended to drive billings growth, position us to build our recurring subscription revenue base, simplify and strengthen our business model, reduce costs, and generate sustained and positive free cash flow," CFO Joe Abbott commented.Among the labor-related reductions, organizational changes will lead to a 22% reduction of HMH's workforce; non-labor reductions include a reduction of manufacturing, service delivery costs and streamlining back office costs.Total expenditures are estimated to reduce by ~$95 to $100M annually relative to its estimated expenditures for the trailing twelve months ended Sept. 30, 2020; one-time charges associated with the transformation are seen between $34 to $36M.HMH

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Houghton Mifflin Harcourt rallies on strategic restructuring