Standard Register lays off 250 workers, Announces Cost Reduction Plan
Press release from the issuing company
7/23/07 -- Standard Register has completed a restructuring action as part of an overall plan to reduce its annual operating costs by $40 million. Earlier this year, the Company consolidated its manufacturing and warehousing operations in a move expected to save approximately $5 million annually. Today's action eliminated approximately 250 positions, primarily in management and overhead, representing $22 million annually in compensation and related costs. Other new initiatives that target purchasing costs and other non-compensation expenditures are expected to lower costs by an additional $13 million annually.
These actions, including the earlier restructuring, are expected to reduce second half 2007 costs by $15 million versus the levels incurred in the first six months of the year. The remaining balance of the $40 million in annual savings is expected next year. Separation costs associated with today's restructuring are estimated at $3.5 million, which will be recorded in the third quarter.
"We are engaged in an industry undergoing fundamental change," said Standard Register's president and chief executive officer, Dennis Rediker. "Digital technology is, as is almost always the case with any disruptive change, both friend and foe. Our traditional business documents are essential for the conduct of business, but many are being replaced or devalued by software. On the other hand, digital technology introduces new opportunities, such as print-on-demand services, for those willing to invest. Our Company's history is one of adapting to change and our goal is to persevere and grow in the digital age. This cost reduction program is a necessary step for the Company to achieve its long-term objectives," said Rediker.
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