Nashville-based Corrections Corporation of America plans to cut between 50 and 55 jobs at its headquarters, about 12 percent of its corporate workforce, as part of a restructuring and cost-reduction plan, the Nashville Business Journal reports. The announcement is part of a rough stretch for CCA, whose stock price plummeted last month after the U.S. Justice Department announced a plan to stop using private prisons like the ones the company operates. CCA said the federal contracts were about seven percent of its revenue, but shares have not recovered in the month since. In August, the Department of Homeland Security announced it was reviewing its use of private prisons.
CCA’s announcement came after Democratic presidential nominee Hillary Clinton called for the end of private prisons during Monday’s debate with Republican nominee Donald Trump. The restructuring plan, which will cost the company $4 million this quarter, is designed to help it “more effectively serve facility operations and support the progression of CCA’s business-diversification strategy,” it said. The company expects the plan to produce savings of $9 million in 2017. CCA president Damon Hininger cited “our strategy to grow our re-entry and real estate platforms” and said he was “confident this restructuring and cost-reduction plan will better position CCA for long-term value creation for our shareholders.”