(Source: Chicago Tribune)
By James P. Miller, Chicago Tribune
Feb. 11--W.W. Grainger Inc., faced with sharply declining sales, outlined a series of cost-cutting measures Wednesday that calls for the Lake Forest distributor of maintenance-related products to eliminate as many as 400 jobs, or about 2.2 percent of its worldwide workforce.
Most of the jobs to be cut are based either in the greater Chicago area, or in Janesville, Wis., a spokesman said.
Citing "weakened demand across all customer end-markets and geographies," Grainger reported that daily sales declined by 9 percent from the year-ago month. A swing to unfavorable foreign currency-conversion rates pinched sales by about two percentage points, the company said but the bulk of the decline is being spurred by the eroding North American economy.
In response to the weakening sales, Grainger said it is moving to lower its cost structure through a number of measures, including cutbacks in employee travel, pay freezes for salaried workers and executives, leaving vacant positions unfilled, and elimination of from 300 to 400 jobs across the company.
The staff cuts are expected to generate severance charges of $15 million to $20 million, most of which will be recorded in the first half of 2009.
A portion of the staff reduction is in response to lower volume caused by the economy's downturn, the company said. But some of the jobs will be eliminated through consolidation, as Grainger moves to combine its Lab Safety Supply group into the parent's Industrial Supply segment.
jpmiller@tribune.com
Citing "weakened demand across all customer end-markets and geographies," Grainger reported that daily sales declined by 9 percent from the year-ago month. A swing to unfavorable foreign currency-conversion rates pinched sales by about two percentage points, the company said but the bulk of the decline is being spurred by the eroding North American economy.
In response to the weakening sales, Grainger said it is moving to lower its cost structure through a number of measures, including cutbacks in employee travel, pay freezes for salaried workers and executives, leaving vacant positions unfilled, and elimination of from 300 to 400 jobs across the company.
The staff cuts are expected to generate severance charges of $15 million to $20 million, most of which will be recorded in the first half of 2009.
jpmiller@tribune.com
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