Libbey is kicking off a corporate organizational realignment plan that company officials said is designed to drive improved performance and growth. It said the plan is expected to reduce annual pre-tax run-rate costs by approximately $9 million to $11 million.
The plan focuses on transformational actions and structural changes to lower the company’s cost base, improve its financial performance and cash flow generation, and create a simplified organization best positioned to deliver against its key financial and operational priorities, the company said.
The plan includes the following actions:
- Transition to a global, functionally aligned organization to better leverage expertise and scale.
- Centralize manufacturing operations and supply chain management to optimize and leverage capabilities and capacity across the global network.
- Integrate key e-commerce functions into the core business, resulting in a more efficient omnichannel commercial operating structure as well as the creation of a new global marketing organization to drive efficiencies and better leverage digital marketing capabilities across the top food service distribution and retail customers.
- Decrease the number of layers and broaden managers’ spans of control to simplify decision making and improve agility and responsiveness.
- Leverage the company’s extensive sales and channel expertise to drive synergies and growth across Libbey’s United States & Canada and Latin America regions.
“Libbey is taking decisive actions to transform our business. The actions we announced today are indicative of our strong commitment to driving improved performance and delivering consistent profitable growth,” said Michael Bauer, CEO of Libbey. “We are taking significant steps to realign and right-size our organization around our most profitable businesses and opportunities.”
In connection with the organizational realignment plan, the company’s board has approved the appointment of company CFO James Burmeister to the additional role of svp/chief operating officer, effective October 1.
While the company conducts a search for a new CFO, Burmeister will continue as Libbey’s svp/CFO. In his expanded role, Burmeister will have primary responsibility for Libbey’s manufacturing, engineering and supply chain operations, in addition to his continuing responsibilities for its accounting, finance and information technology functions, and will provide focused leadership to leverage and optimize its global supply chain.