USG's Cost Reduction Program Impacts Workers
USG Corp. has announced in an SEC filing that it will cut more jobs and other “cost reductions” to save $22 million to $28 million annually. These will be the first workforce cuts the company has had since 2008. Company officials estimate this will incur $4 million to $6 million in related charges.
The drywall manufacturer posted a net loss of $463 million in 2008 on sales and a $787 million loss last year. Through the first three quarters of this year, it has incurred $284 million in net losses on $2.24 billion in sales.
The company’s Richard Fleming, executive vice president and CFO, said in the SEC filing that bad market conditions prompted the cost reduction program “ … to further reduce its overhead and other costs.” Obviously, part of this initiative is the lay-offs. Workers at the company were told earlier this month about the job reduction program and the process will continue until late next month.