Bannockburn, Illinois / Toronto, Ontario,-- Bannockburn, Illinois / Toronto, Ontario, (January 11, 2001) – Robert G. Burton, President and Chief Executive Officer of Moore Corporation (TSE, NYSE: MCL), announced today the company will close its stand alone research and development facility in Grand Island, NY and re-channel all of its future research efforts through its various business units at greatly reduced costs. This action supports Mr. Burton’s previously stated objective to reduce costs by $100 million and intensify the company’s focus on its customers.
Mr. Burton stated:
“By eliminating the research facility, we are taking a significant step in reducing operating expenses. Immediate savings from the action are expected to be $12 to $15 million through the elimination of projects that do not support our core business and the elimination today of approximately 130 research-related positions. An additional financial benefit should be generated from the sale of the building later this year.
This action in no way signals an end to Moore’s commitment to future research efforts that will benefit our customers. Research and development has been a critical focus for Moore Corporation since 1909 and will continue to be a key focus in our core business areas in the future, albeit at a much lower cost to the company and a much higher value to our customers. By focusing research and integrating its research activities into our core businesses, we are moving our R&D activities closer to the customer where they belong. Since our business units are the front line point-of-contact with our customers, they are best positioned to proactively anticipate our customers’ needs and develop future products, services and solutions that add value to our customers’ business platforms.”
Mr. Burton added:
“While the impact to employees is very much regrettable, this action is absolutely necessary to get our costs in line and position the company for improved results. This action is proof of our resolve and my personal commitment for swift action and to taking whatever steps are necessary to secure Moore’s future. I want to thank the employees at Research who have contributed to our success in the past and wish them the very best in the future.”
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