OfficeMax Announces Proactive Cost Reduction Initiative
November 13 2008 - 5:00PM
PR Newswire (US)
NAPERVILLE, Ill., Nov. 13 /PRNewswire/ -- OfficeMax Incorporated
(NYSE:OMX) today announced that, as part of its ongoing efforts to
reduce operating costs in the current challenging economic climate,
the company is eliminating approximately 245 corporate staff and
field management positions in its North American operation. The
company estimates this action will reduce ongoing operating costs
by approximately $20 million with a related severance cost of
approximately $8.5 million. "Challenging economic conditions
require we take proactive steps to maintain a solid business
position that will support long-term growth," said Sam Duncan,
chairman and chief executive officer of OfficeMax. "The decision to
reduce staff is difficult, but is a necessary and realistic
response to the environment we are operating in." OfficeMax has
already taken proactive steps to refine its operations and increase
cost efficiencies, including a recent reorganization of retail
management that reduced store management and reallocated payroll to
key selling positions. The Company also recently announced that it
does not expect to have net new retail store growth in 2009, and
has delayed its store remodel program until economic conditions
improve. Forward-Looking Statements Certain statements made in this
press release and other written or oral statements made by or on
behalf of the company constitute "forward-looking statements"
within the meaning of the federal securities laws, including
statements regarding the company's future performance, as well as
management's expectations, beliefs, intentions, plans, estimates or
projections relating to the future. Management believes that these
forward-looking statements are reasonable. However, the company
cannot guarantee that the impact of the staff reduction on the
company will be as described in the release, or that its actual
results will be consistent with the forward-looking statements and
you should not place undue reliance on them. These statements are
based on current expectations and speak only as of the date they
are made. The company undertakes no obligation to publicly update
or revise any forward-looking statement, whether as a result of
future events, new information or otherwise. Important factors
regarding the company which may cause results to differ from
expectations are included in the company's Annual Report on Form
10-K for the year ended December 29, 2007, under Item 1A "Risk
Factors", and in the company's other filings with the SEC. About
OfficeMax(R) Incorporated OfficeMax Incorporated is a leader in
both business-to-business and retail office products distribution.
The OfficeMax mission is simple: to help our customers do their
best work. The company provides office supplies, print and document
services through OfficeMax Impress(TM), technology products and
solutions, and furniture to large, medium and small businesses and
consumers. OfficeMax customers are served by more than 30,000
associates through direct sales, catalogs, e-commerce and nearly
1,000 stores . For more information, visit:
http://www.officemax.com/. OfficeMax Media Contacts OfficeMax
Investor Contact Bill Bonner Jennifer Rook Mike Steele 630 864 6066
630 864 6057 630 864 6826 DATASOURCE: OfficeMax Incorporated
CONTACT: Media, Bill Bonner, +1-630-864-6066, or Jennifer Rook,
+1-630-864-6057, or Investors, Mike Steele, +1-630-864-6826, all of
OfficeMax Incorporated Web site: http://www.officemax.com/
Copyright
Officemax (NYSE:OMX)
Historical Stock Chart
From May 2024 to Jun 2024
Officemax (NYSE:OMX)
Historical Stock Chart
From Jun 2023 to Jun 2024