Intrepid Potash To Cut 7% Of Workforce, To Take Charge In Q1

(RTTNews) - Potash maker Intrepid Potash (IPI) said it is implementing several cost-savings initiatives, including the elimination of around 7 percent of the workforce. Intrepid estimates to save around $15 million annually from these initiatives.

The changes are meant to better align the firm's cost structure with the current business environment, most specifically the declining potash prices experienced since the middle of 2013 and the conclusion of its major capital projects.

The initiatives include the elimination of 7 percent of the workforce, including capital-project-related support associated with the company's major capital projects that are nearly complete.

Additional measures involve decreases in executive compensation, reduction in the use of outside professionals, and cutbacks in other general and administrative expense items.

Intrepid estimates to save around $15 million annually from these initiatives, with the majority being in general and administrative expense and the remainder being in cost of goods sold.

The workforce reduction is expected to lead to a first quarter 2014 pre-tax charge of $1.5 million to $2.0 million.

IPI climbed 5 percent on Tuesday to close at $16.42.