Posted on 03/28/2005 2:49:14 PM PST by Willie Green
For education and discussion only. Not for commercial use.
GRAND RAPIDS, Mich. - Steelcase Inc. announced Monday that it will cut 600 jobs over the next two years as it shuts down its remaining manufacturing operations in the city and consolidates work at other plants.
The furniture maker said it will vacate the remaining factories at its sprawling Grand Rapids campus.
Much of the work from the chair and panel plants will be moved to plants in Kent County's Gaines Township and Kentwood. About 30 jobs will move to Steelcase's plant in Mexico, The Grand Rapids Press reported.
One hundred white-collar jobs will be cut in the next 30 days. The elimination of 500 blue-collar jobs will take place over two years.
The cuts are designed to reduce excess capacity and improve efficiency. They are expected to save the company $35 million to $45 million a year.
Previous rounds of layoffs by Steelcase cost 6,000 western Michigan employees their jobs in recent years.
Unlike those, the cuts announced Monday have nothing to do with the company's economic performance, chief executive James Hackett said.
"The company is starting to develop a rhythm of results," he said. "This is not the crisis management of the recession."
Steelcase is scheduled to announce its financial results for the fourth quarter on Wednesday.
Employees will be given the option of early retirement, buyouts and severance packages. Blue-collar job cuts will be based on seniority.
Steelcase is the city's single largest taxpayer. When manufacturing in Grand Rapids is closed, it will be the first time since the company's founding in 1912 that it will not produce furniture inside the city limits.
Shares of Steelcase rose 4 cents to $13.74 in regular trading Monday on the New York Stock Exchange.
way to keep jobs in the state, Jenny
Stab me now to the rescue !!!!
simply pathetic !!!!
Yes, Jim Hackett, CEO thinks he can cut his way to more profitability. He has a 10 year record of failure. Stock price is 1/3 of what is was, market share has continually eroded, 6,000 jobs gone. My what a fine job he has done.
Holy crap! Something is still manufactured in America?
Better gid rid of those American jobs FAST, so international investors can see an additional penny or two in their quarterly dividends.
What terrible hair. She's trying to look like Hillary.
OMG. Hope they don't all move to Florida....
I had a Steelcase file cabinet one time. It was a major piece of crap. Less than a year from showroom to landfill.
On the bright side....to help out with the job situation.....maybe they'll build a new Walmart in the area.......
I hope Herman Miller does not follow suit.
I live in Grand Rapids and work not far from the Steelcase plants.
When I had to buy an office chair last week, my first thought was to buy something local.
So I went to a USED office supply store and was looking at USED Steelcase chairs for $150 on up.
When I asked to see something under $100, the man showed me a LIME GREEN fabric office chair that would have looked very dashing with my dad's leisure suit and platform shoes from the 1970s.
"That one is only $85," he said.
So I left for Office Depot and purchased a brand new black LEATHER office chair for $49.
While I am sure there are enough file cabinets in the US for the next twenty years.....the MI tax increases dont help businesses there.
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