Abitibi streamlines in Montreal
May 1, 2006 By Pulp & Paper Canada
This time, the job cuts aren’t being made at the mill level, but rather, to sales, general and administration depar…
This time, the job cuts aren’t being made at the mill level, but rather, to sales, general and administration departments.
Looking to slash its expenses by $35 million, Abitibi-Consolidated is cutting 200 jobs, primarily from its head office in Montreal.
“Addressing (administration) expenses was the logical next step to position Abitibi-Consolidated for the future and to exceed our $175 million (earnings before interest, taxes, depreciation and amortization) improvement from cost and productivity initiatives,” Canadian Press reported CEO John Weaver as saying. “It is our intention to reduce our (administration) costs by 20%, saving the company approximately $35 million compared to our 2005 baseline.”
The company recently posted a first quarter loss of $33 million.
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