ACCO Brands Corporation (ACCO) Announces Cost Savings Plan, to Cut 300 Staff

December 20, 2023 5:04 PM EST

On December 14, 2023, ACCO Brands Corporation (NYSE: ACCO) committed to a cost savings plan (the “Plan”) which will result in the closing of its facility in Sidney, NY (“Sidney”) which manufactures and distributes the Company's dated and planning products. The facility closure is part of the Company's ongoing global footprint rationalization program which is a key component of the Company's long-term strategy to simplify operations, reduce costs and improve overall financial performance. The Plan includes relocating the manufacturing activities to an external supplier, transitioning the distribution function to the Company's Booneville, MS facility over the next twelve months and closing the Sidney facility by the end of 2024. Sidney has approximately 300 employees that will be impacted by the Plan.

The Company expects to record a pre-tax restructuring charge for the period ending December 31, 2023 of approximately $9 million representing employee termination and benefit costs. We expect to record additional restructuring charges of $2 million during 2024 relating to the wind-up activities at Sidney. In addition, during 2024, we expect to record non-restructuring charges of $1 million and $1 million of capital expenditures related to the start-up activities at an external supplier and the Company's Booneville, MS facility.

Total cash expenditures are expected to be $13 million, and the Company currently anticipates cash outflows of approximately $7 million in 2024 and $6 million in 2025. The Sidney facility is owned by the Company and will be marketed for sale. However, current real estate market conditions make a future sale date uncertain and therefore the foregoing estimates do not reflect potential cash proceeds from the sale of the facility.

The actions to be taken under the Plan are expected to result in approximately $12 million in annualized cost savings when fully realized in calendar year 2025.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Corporate News