Moore to Cut Expenses $100 Million, Everything Up for Review
Press release from the issuing company
BANNOCKBURN, Ill. / TORONTO, ON - Moore Corporation Limited (TSE, NYSE: MCL). Following his appointment on December 21, 2000 to the position of President and Chief Executive Officer, Robert G. Burton today announced a series of initiatives designed to aggressively eliminate costs from the company while simultaneously intensifying focus on customers.
Mr. Burton stated:
"As I stated in December, I am excited to have been presented the opportunity to lead this dynamic and strong company. Moore Corporation with appropriate direction is positioned to grow and to deliver results.
However, after an initial review of the organization it is, in my opinion, glaringly apparent that the results of the company are unacceptable. The costs of this company are completely out of line with our revenue. As a result of this misalignment, I am initiating actions that are designed to reduce our expenses by $100,000,000 during the course of the next 12 to 18 months.
Included in this aggressive cost savings initiative will be a review of all of our business lines; productivity goals; capital spending and return on investment; training initiatives; financial controls; business processes; procurement; logistics; energy utilization; organizational structure; MIS/IT structure, spending and future direction; disposition of non-essential assets (including real estate) and a complete review of all facility locations including the location of the headquarters, various business units and our geographically dispersed back office operations.
Additionally, while very much regrettable, the truth of the matter is that we have significantly more people in the organization than are required to meet the needs of customers. The organization is top heavy. There is a significant amount of redundancy within the organization. We have made processes more complicated than they need to be resulting in both a waste of time and money. We will set about with initiatives to immediately centralize duplicative functions and eliminate non-essential jobs, activities and programs. In the next 30 to 60 days we will begin a headcount reduction of approximately 10% with an emphasis at the headquarters facility. Managers will be expected to wear multiple hats and add value in various roles within the company. This move will result in lower operating costs, improved cost of goods sold, improved operational efficiency, swifter decision-making, better communications as well as create a consistent and more effective approach to managing our business.
We have a tremendous talent base of dedicated employees in this organization. I know that many of them see the same waste of money and resources that I see. By reducing layers of management and tapping the potential and ideas of employees that have not been visible in the organization I expect that we will be able to generate better, more efficient ways to manage the business."
"In line with our goal and to ensure appropriate emphasis on customers, revenue growth and cost containment, I am today taking on the additional responsibility of being the senior manager of our forms and labels business. This business segment accounts for 50 percent of our consolidated revenue and is a key component of our future. I am not pleased with the results of this unit. I am unwilling to turn the leadership of the unit over to anyone until I personally understand what needs to be done to ensure its sustained success".
"While reviews will take place and changes will occur, we cannot lose sight of our need to expand our already impressive focus on customers and ensure that our sales team and our operations have the tools and support to meet this challenge. We need to take to a new level our partnership with our customers. We need to ensure that we are continually positioned to meet and exceed their ever-changing needs.
There is a lot that needs to be accomplished at Moore and I look forward to immediately setting a course to grow this company and ensuring its success. This company with its strong sales team, dedicated employee population and creative manufacturing talent has all the components to be successful. We have tremendous opportunities and this is one reason why I chose to invest $2,000,000 of my own money into the company. I plan on initiating meetings and communicating with investors, customers and employees to discuss the opportunities and action plans I have for the company. The company has a rich history and I look forward to ensuring that there is a strong foundation from which to grow as we move through this new millennium. As we finalize decisions and make other changes we will continue to keep our customers, shareholders and employees updated on our progress. We are working on behalf of this group to ensure our success and to deliver results. Most of all we fully understand that we are working for our shareholders to increase the value of their investment in Moore Corporation Limited."
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