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.