June 25, 2014
Castle Plans Another $7 Million in Cuts
A.M. Castle, which launched an aggressive reorganization campaign in 2013, has announced another series of cost-cutting initiatives. The new plan is expected to save a further $7 million through a streamlining of operations.
The changes include workforce reductions in both executive and management positions, and will take place beginning in the third quarter. The company's 2013 cost-reduction moves included the closing of several locations.
"The organizational changes we are implementing continue moving us closer to our targeted cost structure," says Scott Dolan, president and CEO of the Oak Brook, Ill.-based service center. "We are beginning to see some improvement in the scope and quality of our order book, but we need to expedite our commercial initiatives and ensure we efficiently apply our resources where they will have the greatest impact for the company. Further, we must continue to streamline our organization to increase our speed of communication and decision-making."
The organizational changes include the retirement of Tim Lafontaine, vice president of marketing, who will continue with the company until mid-2015.
"These organizational changes were implemented as part of our ongoing continuous improvement plan and were not in reaction to the company's recent financial results. Through the first two months of the second quarter, we have seen operating and financial results that are comparable to the first quarter overall. We will continue to look at the organization as a whole to ensure it is operationally and structurally optimized and aligned with our objectives," Dolan says.