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Capital Business
Posted at 10:12 AM ET, 02/03/2012

Booz Allen cuts 2 percent of workforce

McLean-based Booz Allen Hamilton reduced its total headcount by about 2 percent in January and made deeper cuts in its senior and middle management ranks, its chief executive said today.

Ralph Shrader, who also serves as president and chairman of the contracting giant, said the reduction included a 10 percent reduction in its senior and middle management and internal operations workforce.

As of Dec. 31, 2011, the company reported 25,800 total employees, including about 14,000 based locally.

Shrader said during a call with investors this morning that the company’s overhead costs were not sized to match the shrinking federal market the company faces.

The cuts reflect the company’s “determination to get out in front,” Shrader said. “We believe these measures will better position Booz Allen for continued growth.”

Samuel R. Strickland, Booz Allen’s chief financial officer, told investors the company expects to incur a charge of $10 to $14 million in the next quarter associated with one-time termination benefits.

The company reported strong earnings, posting revenue of $62.9 million (44 cents a share) in the three-month period ended Dec. 31, up nearly 166 percent from $23.6 million (18 cents) in the same period a year earlier. Revenue increased nearly 4 percent to $1.44 billion.

By  |  10:12 AM ET, 02/03/2012

 
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