Arcadis is cutting approximately 1,000 jobs, the Dutch consultancy and engineering firm announced as part of its “reset” strategy for the coming years. The company also announced plans to divest most of its architecture operations and its China operations.

Arcadis presented its “reset” on Tuesday, ahead of Investors Day. The company says it wants to simplify its organization and focus more on markets where demand is highest. “All enabled by AI and digital innovation,” Arcadis said. The measures should also increase profitability.

“We are building a more focused, higher-performing Arcadis that delivers sustainable value for shareholders, our people and our clients,” said CEO Heather Polinsky.

The company didn’t say where the job cuts would happen, only that they are part of “overhead right-sizing targeted in 2027” and that it would continue hiring in growth areas. Arcadis employs over 34,000 people in over 30 countries.

“The financial rationale is compelling: a more focused portfolio, a structurally lower cost base and disciplined capital allocation will support higher margins, stronger cash generation and sustainable shareholder returns,” said CFO Simon Crowe.

In recent months, Arcadis rejected several unsolicited takeover bids from its Canadian industry peer WSP Global. The Canadian company withdrew its latest bid just last week. According to WSP, it could not engage Arcadis in discussions for a potential merger. WSP initially offered €48.50 per share, raising that to €51.50 a few weeks later. The final proposal valued Arcadis at approximately €4.7 billion.