BGSF Inc (BGSF) Announces Cost Restructuring Plan

BGSF, Inc. (NYSE: BGSF) (the “Company” or “BGSF”), a national provider of consulting, managed services, and workforce solutions, announces, as part of its strategic review process, that it has executed a cost restructuring plan during the fourth quarter.

The Company recently implemented a significant restructuring plan designed to reduce costs, improve operating performance, and position the organization for profitable growth. The Company estimates that this plan will reduce annual compensation and benefit expenses by approximately $5 million. The Company has also identified other expense reductions that it plans to execute in 2025 that the Company expects will deliver an estimated $2 million to $4 million in savings during 2025. In addition to expense savings, the Company anticipates reducing its expected annual cash capital expenditures by approximately $800,000 during 2025 by shifting development support to its recently acquired near-shore operation.

“This restructuring plan re-baselines costs to improve profitability. While we have progressed with the Company’s strategic review, uncertainties and macro pressures have continued to adversely impact both of our operating divisions. The Board and the Company’s management continue to evaluate strategic alternatives and expect this to be a 12 to 18-month process from our original announcement in May 2024,” said Beth Garvey, Chair, President, and Chief Executive Officer.

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