Plan Sees Bowne Eliminating 650 Jobs
NEW YORK—Despite garnering a first quarter profit of $71 million on sales of $208.8 million, Bowne & Co. announced a cost reduction initiative that will see the financial printer reduce its workforce by 15 percent.
Bowne is targeting $50 million in annualized cost reductions in 2008 as part of a continued focus on improving its cost structure. The result is that about 650 employees will be released, which will account for $21 million in savings.
Another $9 million in savings will result from the continuation of savings initiatives from 2007. The final $20 million in savings will be realized from the integration and transition of recently acquired businesses. In April, Bowne acquired Rapid Solutions Group for $14.5 million in cash.
David J. Shea, chairman and CEO of Bowne, is confident the cost-cutting measures will make the company stronger financially, as it looks to add variety to its product and service offerings.
“We earned $71 million in gross profit during the first quarter, despite the significant downturn in the capital markets,” Shea said. “We believe our recent strategic acquisitions, combined with our ongoing efforts to diversify our revenue stream and reduce costs, will benefit us as we manage through this challenging environment. We are confident that pursuing this strategy will significantly improve our profitability in the second half of this year and beyond.”