Valassis Shaves 100 Jobs as Value Plummets
LIVONIA, MI—Following a third quarter loss of $5.2 million, Valassis Communications announced it had cut 100 jobs, the Detroit News reported. Valassis was also removed from the Standard and Poor’s MidCap 400 index after its market value dropped the company to last among the ranking of 400 mid-sized firms. Valassis also cut its 2008 profit forecast by as much as 28 percent. The company expects adjusted profit of $1.71 per share for the year, according to the paper, down from the $2.14 to $2.39 range projected earlier.
The job cuts were part of a plan that includes spending cuts and increased production efficiencies.
“Decisions that impact our employees are not taken lightly,” said Alan Schultz, Valassis president and CEO, in a statement. “We make every effort to minimize headcount reductions.”
The company’s stock, which reached a 52-week high of $16.80, fell under $1.25 on November 19.