Dive Brief:
- KBR, Inc. announced Thursday that it will restructure after a strategic review aimed at reducing operating costs.
- The reorganization will reorganize into three new businesses focusing on: consulting and technology, engineering and construction, and government services.
- The eighth-largest commercial construction company in the U.S, this shakeup is expected to cost $800M-1B pre-tax, but will ultimately save $200 million a year in operational costs by 2016.
Dive Insight:
A former subsidiary of Halliburton Co., KBR has been an instrumental government contractor, building the U.S. embassy in Kabul, providing logistical support for U.S. troops after the Iraq invasion, and was a prime contractor for the NATO base in Kosovo. However, money has been tight since troop pullout in Afghanistan—likely the cause for a strategic review. KBR plans to shed EPC Power, EPC Infrastructure and other stand-alone construction segments.