The company that acquired the Mead consumer and office products division in Kettering from MeadWestvaco is planning to reduce approximately 12 percent of its salaried workforce in 2014.
Illinois-based ACCO Brands filed paperwork with the U.S. Securities and Exchange Commission in mid-December revealing a “restructuring action” for its North American operations that is expected to be completed by the end of this year.
There are about 250 workers at the Kettering operations, but ACCO Brands spokesman Rich Nelson declined to say how many jobs will be affected at that location.
The restructuring is “in light of current economic and industry conditions and in anticipation of an uncertain demand environment and the impact of industry consolidation in 2014,” according to the SEC filing.
Nelson said the company began notifying some of its affected U.S. and Canada employees last week that their positions are being eliminated.
Employees impacted by the reductions will receive severance, outplacement assistance and other services consistent with company policy, Nelson said.
Nelson declined to provide any additional information, citing employees’ privacy.
According to the SEC filing, ACCO Brands will pay out approximately $12.7 million total in employee termination and benefits costs in 2014 ($11.8 million) and 2015 ($900,000).
The company “expects to realize approximately $23.8 million in annual savings from these restructuring actions net of related structural investments, with approximately $16 million benefiting 2014 and an incremental approximately $7.8 million benefiting 2015,” the SEC filing said.
In November 2011, MeadWestvaco publicly announced that it was spinning off its Mead consumer and office products division to ACCO Brands in a deal eventually said to be worth $998 million. The merger became complete in May 2012.