Compass Minerals announced significant measures to reduce its cost structure, including the elimination of over 10% of its corporate workforce, impacting nearly 50 positions. These actions are aimed at increasing free cash flow and accelerating debt reduction.
The company also decided to wind down its fire retardant business, Fortress North America, and terminate all associated employees. This move underscores a strategic refocus on its core Salt and Plant Nutrition businesses.
Compass Minerals estimates these combined actions will result in run-rate cash savings of $11 million to $13 million for the trailing 12-month period ended December 31, 2024. The company expects to recognize a non-cash impairment related to Fortress assets and a non-cash gain from the elimination of the contingent consideration liability in the fiscal second quarter of 2025.
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