Quebecor Shuts 7 Plants, Blames Sept. 11 Terrorist Attacks
Quebecor World is closing seven plants and cutting 2,400 jobs -- 6 percent of its work force -- because of a severe economic slowdown following the Sept. 11 terrorist attacks.The layoffs will cut into the printing giant's global work force of 40,000 people who work in facilities in the United States, Canada, Europe, Latin America and India. The locations were not disclosed yesterday because the employees being let go had not received their layoff notices.
The Montreal-based company also said profits would be 15 percent lower than expected in the third quarter. The revised estimate results mostly from a slowing demand for printed products in the United States and Europe because of an overall economic slowdown and a drop in advertising spending, a statement by the firm said.
The company, controlled by multimedia giant Quebecor Inc., expects to save about $28.8 million annually with the closings. The printer still will have around 160 plants in operation.
