Andersen to Restructure and Cut 250 Jobs
July 16, 2009
Andersen Corp. announced on July 14 that it will reduce its management
and office staff by approximately 250 people as a result of internal
restructuring. Although some workers previously laid off were brought
back in May due to seasonal increases, and other factors, it wasn't
enough to prevent the cutbacks. The company, which employs nearly
11,000 people across North America, says this will occur through
a combination of early retirements, attrition, open positions and
job eliminations. The majority of these reductions will be from
its staff in the Bayport, Minn., area.
"While we had every hope and intention of riding out this market
correction without making adjustments like this, it has become clear
that these actions are necessary to protect the company's financial
strength and flexibility given the fading prospects for a near-term
housing market recovery," said Jay Lund, president of the Andersen
Window and Door Group.
In January 2009, Andersen temporarily laid off nearly 600 production
workers due to lower order volume. By the end of May, those employees
had been called back in response to seasonal demand, a series of
sales and marketing initiatives and increased orders attributed
to the federal tax credit for energy efficient replacement doors
However, it wasn't enough to keep all Andersen workers employed
and Lund attributes this to two main reasons, which makes the reductions
"There is mounting evidence that housing demand will not recover
until late 2010 or 2011 as a result of rising unemployment, escalating
foreclosures, falling home prices, limited credit and weak consumer
confidence," said Lund. "This significantly reduces our
opportunity to generate the level of sales needed to profitably
support a company of this size."
He said the second factor is related to Andersen's structure.
"Over the last decade, we've invested in improved technology,
and we've strategically acquired a number of businesses that have
been key to meeting customer needs with an expanded product portfolio.
We've already integrated or restructured some functions to improve
coordination and eliminate significant redundancies, and given the
environment we're now in, we've chosen to accelerate further integration
efforts. All of this has enabled us to support the business needs
with a leaner management and support staff. "
Employees affected by the permanent job eliminations will be provided
with severance pay, benefit continuation as well as help with future
job searches. In addition, they can apply for state unemployment
benefits, according to the company.
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