Sunrise Senior Living, Inc. (NYSE: SRZ) announced yesterday details of its efforts to cut overhead spending and become a leaner organization and will attempt to realize more than $20 million of annual recurring savings from a reduction in non-care related administrative costs. In connection with this announcement, Richard J. Nadeau, Sunrise’s chief financial officer, will transition from his role on or before June 15, 2009, at which time Julie A. Pangelinan, Sunrise’s chief accounting officer, will succeed Mr. Nadeau as chief financial officer of Sunrise. The company plans to achieve the cost savings throught a reduction in non-care related corporate expenses by reorganizing Sunrise’s corporate cost structure, including through a reduction in spending related to administrative processes, vendors and consultants. Sunrise has identified at least 150 positions to be eliminated at its corporate headquarters, in Germany, and in Sunrise’s regional support group and expects to record additional severance expense of approximately $4.5 million in 2009 as a result of this plan. The cost reductions and reductions in staff levels is expected to be fully completed by early 2010.
"We continue to work on a number of fronts to strengthen the financial position of Sunrise," said Mark Ordan, Sunrise’s chief executive officer. "The decision to reduce the number of people at Sunrise is never easy, but it was essential given today’s economic environment and our need to further reduce spending. We want to be completely clear that none of these changes will affect the extraordinary care and services we provide in our communities."
For more information on the downsizing efforts, click here.