Standard Register Consolidates, Cuts Jobs
DAYTON, OH—Standard Register is eliminating about 500 jobs by closing one plant and consolidating four regional fulfillment centers in response to weak first quarter results.
The company will cut 235 jobs with the closing of its rotary printing plant in Kirksville, MO, citing overcapacity as the reason it is shuttering the facility.
Another 150 jobs will be eliminated when the company consolidates four fulfillment centers to form a new regional print-on-demand (POD) and fulfillment center in Dallas. Two of the centers that will be closed are in Dallas; one is in Oklahoma City and one is in Spring Grove, IL.
Several warehouses will also be consolidated in response to shifting demand in favor of print-on-demand services. The closings and consolidations are expected to occur within three months.
Another 70 jobs, mostly administrative positions, were eliminated at the company's headquarters prior to this announcement.
These cost reductions are expected to generate annualized pretax savings of approximately $30 million, with about $17 million of savings realized over the balance of 2003. The job cuts will bring Standard Register's total work force to about 5,100 workers.
"We're taking the actions we believe are necessary to align with business conditions, while further strengthening our platform for long-term growth," says Dennis L. Rediker, Standard Register president and CEO. "We are optimistic about our prospects."
The company's announcement that it would cut its work force came during Standard's recent conference call to announce its first quarter results.
Revenues in the 2003 first quarter were $236 million, down 10.5 percent from the $264 million in the 2002 first quarter.
According to company executives, the lower sales reflects continuing weak economic conditions and reductions in the revenue base during 2002 related to residual effects of the company's restructuring in 2001.