including cutting its salaried workforce by up to 400 positions in 2009.
"We are taking actions to align our organization for effectiveness and to right-size our cost structure to increase our competitiveness in today's global markets," said James W. Griffith, president and chief executive officer. "We believe this reorganization will simplify our operating structure, improving our effectiveness in managing through these challenging economic times."
The company has targeted pretax savings of $30 to $40 million in annual selling and administrative costs. Implementations of these savings are expected to begin immediately and essentially be completed by the end of the third quarter. The impact of this cost-saving initiative was included in the earnings estimate for 2009 the company provided in January. Full-year savings will be achieved in 2010.
Over the past 15 months, the company has lowered production and cut its manufacturing workforce by approximately 2,500 positions. Other steps, such as short work weeks and reduced operating hours, have been taken to better align output to demand. Additional permanent adjustments will be made as necessary.