Checkpoint expands restructuring to cut 1,000 jobs
The Philadelphia-based maker of anti-theft devices for retailers said poor economic conditions globally are behind its latest push to cut costs.
Checkpoint expands restructuring to cut 1,000 jobs
Mike Armstrong, Inquirer Columnist
Philadelphia-based Checkpoint Systems Inc. announced plans to expand a restructuring program to cut expenses and jobs.
The maker of anti-theft devices for retail chains said its new plans would affect 1,000 existing employees, up from the 204 in its original scheme. Checkpoint said it had "already taken steps to eliminate three senior executive positions" and intends to "aggressively take out layers of management."
In addition, Checkpoint plans to close four production facilities, but did not specify where in its news release.
The expanded restructuring is aimed at producing cost savings of $49 million in 2012 compared with the $20 million to $25 million in savings contemplated by the previous plan.
Here's what Checkpoint CEO Rob van der Merwe had to say:
The ongoing global economic uncertainty combined with unpredictable retailer behavior has convinced us that a conservative view of the market is required and that the company needs to be immediately restructured to meet that view.
The company lowered its full-year guidance for revenues and earnings. It now expects net revenues to be $860 million to $880 million, down from the $920 million to $940 million it had projected in early August.
It also expects non-GAAP diluted net earings per share to be 32 cents to 43 cents, down from $1.24 to $1.34.
In trading early Wednesday, shares of Checkpoint were down 24 percent, or $3.53 per share, to $10.87.
Job creators.— Politburo- Sounds like someone is getting ready to put the company up for sale— martycon
I guess we should approve that bogus job creator foreign profits repatriation act. It has bi partisan support for another corporate tax loophole. So then, Checkpoint can bring back the money it pays no taxes on from around the world for next to nothing, and then do even less with it to create jobs. Oh wait, maybe some the 1000 it destroys will be brought back with the tax give away. Yea, that is a job creator, first downsize, than add a few back in, and then get a photo opp with Senators and Congress saying they are fighting to make more American jobs for Americans.- Not sure of the number of shares out there, but it sounds like this group made a nice profit....Ooops, sorry, it's EMPLOYEES made a nice profit. Just another example of the skumbag greed that has become a staple of what amerikan capitalism is all about.— CiceroSpuriousDeodatus
- Let's see...retail is in the dumps, so sales are down dramatically. That means that there is lots of idle capacity and people whose services are not needed. So, do you expect the company to be a socialist paradise and keep the factories humming and people working when there is no demand for their products (much like the US Auto Makers five years ago), or do you tailor the business to market conditions?— Constant Reader
- Wait, no one raised taxes, so why are you not investing capital in job creation?— ricciaje
- I have a wonderful idea: why doesn't the CEO take a pay-cut to save as many jobs as possible?— The Baron
If you raise our taxes we won't create jobs;
If you keep our taxes the same we don't create jobs;
If you lower our taxes we might create jobs;
If you let us repatriate our foreign earnings (untaxed) we will think about creating jobs;
OK - now that instills confidence in the private sector. Now where did I put my "Free-Market, Pro Capitalism" bumper sticker?
— jbgjresq- Don't forget we need to drill for more oil offshore and blow up mountains to get more clean coal to protect American jobs.— damnels
Mike Armstrong blogs about Philadelphia corporations and business-related topics. Contact him at 215-854-2980.
Reach Mike at marmstrong@phillynews.com.
