Cenveo Reduces Management Staff to Cut Costs
Cenveo eliminated 125 employees, mainly in management, and changed operating procedures to try to cut $9 million in costs this year and $20 million per year thereafter, the 10,000-employee commercial print service company said this week.The changes aim to give more decision-making power to local management, said Cenveo, Englewood, CO. The savings represent a 7 percent reduction in costs for the company.
Cenveo is embroiled in a power struggle between the board of directors and Robert Burton of Burton Capital Management. Burton has a stake in Cenveo and, according to the company, has demanded that the board hire him as chairman/CEO.
Cenveo CEO Paul Reilly announced his resignation in January, and the company has yet to hire a replacement. Burton has declined to participate in the CEO selection process, nor has he made an acquisition proposal, according to Cenveo.
Cenveo said in April that it would seek "strategic alternatives." That review is continuing, and Cenveo has received "expressions of interest" from "a number of parties," the company said.
Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters
