ModusLink Global Solutions, Inc. announced reorganization of operations. First, the company's taking actions to reorganize its operations and reduce costs. The company plans to reduce employee costs by $20 million to $24 million with the majority of the reductions being implemented in the first half of fiscal 2013.

This includes actions taken in the first quarter of fiscal 2013, which reduced total annualized employee costs by $7.3 million. In fiscal 2013, the company expects between $13 million and $16 million of restructuring costs associated with cost reduction actions. As part of these actions, the company consolidating business unit structure and centralizing key functions.

The company have combined integrated services group, which included Aftermarket Services and e-Business solutions with Supply Chain operations. With that, the company in the process of centralizing many indirect functions such as supply chain planning and client program managing. This change will enable quicker, more efficient implementation of new programs and will drive improved consistency through all of processes and across all of global sites.

Second, the company is taking action to increase its focus on its core global supply chain and logistics business. The company agreed to and closed the sale of Tech for Less operations for a purchase price of $1.6 million. Third, the company taking actions to improve balance sheet.

The company's working to reduce operating expenses and working capital to improve cash flow without compromising client service.