MeadWestvaco to Slash $200 Million in Costs

Share this content:
Paper and packaging manufacturer MeadWestvaco said yesterday it would slash another $200 million in costs in an ongoing effort to make the company more responsive.


The cuts, aimed at reducing administrative costs and streamlining warehouse operations, are part of a new business model to let MeadWestvaco react faster to market changes, the Stamford, CT, company said.


The initiative follows a $500 million cost cutback begun by MeadWestvaco in December 2003 involving the elimination of 1,000 employees. That program resulted from a consolidation following the merger of The Mead Corp. and Westvaco Corp., which led to the formation of MeadWestvaco.


MeadWestvaco reported that it took a net loss of $83 million in the second quarter of 2005. All but $13 million of that loss was attributed to the company's printing and writing papers business, which it has discontinued and sold for $2.2 billion.


Increasing energy and raw material costs offset improvements in selling prices during the quarter, MeadWestvaco said. The company said it expected demand to be stronger in the second half of 2005 and that it would seek price increases in response to ongoing increases in material, energy and freight costs.


Scott Hovanyetz covers telemarketing, production and printing and direct response TV marketing for DM News and DMNews.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


Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above