PASADENA, Calif. -- Label and office products maker Avery Dennison Corp. is eliminating 1,500 jobs, or 9.3 percent of its work force, and is closing eight facilities in a bid to cut costs and boost profits.
The moves announced today will save between $15 million to $18 million in 1999, according to Philip M. Neal, president and chief executive.
He said when fully implemented, the cuts will save between $58 million to $62 million annually.
Avery Dennison makes peel-and-stick postage stamps, battery labels, automated retail tag and labeling systems and specialty tapes and chemicals.
The company has about 16,100 employees in 200 manufacturing and sales facilities worldwide.
It is closing an office products plant in Rochelle, Ill., and a materials plant in Germany, spokesman Charles Coleman. He said a materials production plant in Rancho Cucamonga, Calif., will be closed and be converted for use as a distribution center with fewer employees required.
Coleman said the five other facilities being closed have not been identified or announced.
The restructuring will result in a one-time charge of $60 million to $65 million before taxes, or 40 cents to 42 cents per share after taxes, in the first quarter. The restructuring charge will include severance costs, related asset write-offs and other one-time expenses.
Neal said he expects the realignment will "position the company for double-digit earnings growth in 1999 and beyond" excluding the charge.