Kinkos.com to Layoff 70 Employees and Roll Up Into Kinko’s Inc.
Press release from the issuing company
VENTURA, Calif. - Kinko's, Inc. and kinkos.com today announced a merger, completing the integration of Kinko's more than 1,100 digitally connected branches with kinkos.com and its Web-based print and ship service.
The merger enables Kinko's to take its "clicks and bricks" strategy to the next level and to bring new products and solutions to market more rapidly, effectively and efficiently. Current kinkos.com products and services will not be impacted and the change is expected to be transparent to consumers.
"kinkos.com will be integrated into all aspects of the company including marketing, merchandising, new product development, strategic partner relationships and business development," said Joe Hardin, president and chief executive officer, Kinko's, Inc.
"Kinko's is a single company and a single brand," Hardin said. "Our overriding goal, online and offline, is to serve our customers, wherever they are and whenever they need us, with document solutions that are reliable, high quality and convenient. Effective integration of acquired businesses is an important attribute of business success. This complete integration combines the knowledge and experience of both companies - the kinkos.com technology and Kinko's experience and worldwide presence."
The integration of kinkos.com products and service will result in the closing of the kinkos.com office in Alexandria, Va., and will impact up to 70 positions over the course of the first quarter 2001. Some key employees will be offered the opportunity to relocate and take positions at Kinko's headquarters in Ventura, Calif. All departing co-workers will receive competitive severance packages and outplacement support. Rick Steele, chief executive officer of kinkos.com, will stay on with the combined company through the transition period to help ensure a smooth integration.
"We are committed to the ongoing expansion of the Kinko's brand in our branches and on the Internet to effectively serve our customers both online and offline. The merger will enable us to fully integrate kinkos.com and to leverage all our resources to extend and enhance our Web-based document solution services," Hardin said.
"This is a necessary business decision. Improved cost-effectiveness will make us even more competitive and productive in an increasingly rugged and challenging marketplace. We also expect this decision to benefit our relationships with key strategic partners," continued Hardin.
Financial terms of the arrangement were not disclosed
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