|CIMPRESS N.V. filed this Form 8-K on 11/03/2017|
Item 2.05. Costs Associated With Exit or Disposal Activities
On November 3, 2017, the Chief Executive Officer of Cimpress N.V. approved the recommendation of the Vistaprint leadership team to reorganize the Vistaprint business and committed Cimpress to the restructuring. This restructuring will reduce Vistaprint headcount and other operating costs, and is expected to simplify operations and more closely align functions to increase the speed of execution. We believe these changes will both increase the steady-state free cash flow of Vistaprint and free up capital to reinvest in other areas of Vistaprint that provide the greatest benefit to our customers and our long-term shareholders.
Cimpress expects the Vistaprint headcount and cost reductions to be largely implemented over the coming two months and believes they will reduce fiscal year 2018 operating expenses by between $20 million and $22 million. Certain of the actions that are being considered are subject to mandatory consultations with employees, works councils and/or governmental authorities. Based on a preliminary assessment of the planned actions, Cimpress expects to take restructuring charges of approximately $15 million to $17 million during the quarter ending December 31, 2017, which primarily consists of one-time termination benefits. Cimpress expects that almost all of the estimated restructuring charges will be cash expenditures.
This report contains statements about our future expectations, plans, and prospects of our business that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, including the expected effects of, savings from, and charges associated with the Vistaprint restructuring, and our actual results may differ materially from those indicated by these forward-looking statements. Our forward-looking projections and expectations for the Vistaprint restructuring are based on assumptions and judgments by management that may turn out to be wrong, the restructuring may not have the effects that we expect, we may lose key personnel, and we may fail to reposition our Vistaprint brand, attract new customers and retain our current customers, and manage the growth and complexity of our business. You can find other factors that may cause our actual results to differ materially from those indicated by the forward-looking statements in this report in our Form 10-Q for the fiscal quarter ended September 30, 2017 and the other documents we periodically file with the U.S. SEC.