Essex Rental Corp. announced a reduction in its workforce to align operating expenses with business conditions. The company reduced its number of employees by about 8 percent, and the reduction is expected to result in more than $1.7 million in annual cost savings. These savings, in addition to previously announced corporate governance changes, will result in annualized savings of approximately $2.2 million.
“We made the difficult decision to eliminate a number of positions within the company in order to help reduce expenses and improve profitability,” said Nick Matthews, Essex CEO. “We continue to believe that our business is in the midst of a gradual improvement, and while these decisions are never easy, I am confident the reductions were necessary and in the best interests of all stakeholders.”
Essex expects to record total charges related to these actions of about $0.1 million during the third quarter of 2015. The charges consist of termination benefits, including severance, which are expected to be settled in cash.
Essex Rental Corp., based in Buffalo Grove, Ill., is No. 52 on the RER 100.