Neenah Foundry Co. and its parent company have outlined a restructuring and cost-reduction plan that is centered on “salaried headcount reductions,” and aims to save $2.5 million to $3 million annually, according to a statement.
Specific managerial changes at the operations level of the iron castings and steel forgings producer were not detailed, but the company stated it expects to being realizing savings in the second quarter of 2008 (ending September 30, 2008), with the full savings projected to be realized in 2009. Neenah stated it anticipates emplyee-termination costs of $1.25 million to $1.75 million during the first quarter of 2008 (ending June 30, 2008.)
Calling it a separate move, Neenah announced that former president and CEO William M. Barrett, now executive chairman of the company’s board, will retire November 21, and then become non-executive chairman of the board.
"On behalf of the board of directors and all of the employees of Neenah, I would like to thank Bill for his years of service and tremendous contributions to the company. We all look forward to Bill's continued involvement with Neenah in his role as chairman," stated Neenah Foundry president and CEO Robert E. Ostendorf.
Neenah Foundry to Cut Costs by Cutting Salaried Positions
Barrett to retire, become non-executive chairman