Transcontinental Direct USA has cut 50 jobs at three of its Pennsylvania locations.
Employees at the Orwigsburg, PA; Hamburg, PA; and Reading, PA sites were informed of the layoffs on Monday. Transcontinental has seven factories in Pennsylvania; the others will not be affected by the cutbacks.
“In essence, we consolidated two satellite operations in order to leverage our indirect structure,” explained Rob Young, president of Transcontinental. “We’re moving equipment into the Hamburg facility and have capacity at the volumes we’ve been running, which is nearly 10 million a day in PA. With our footprint and the investments we’ve already made, we will be able to handle all customers in the foreseeable future.”
Young added that the company aims to enhance its capabilities in the direct mail area. It will also grow its marketing strategy for variable one-to-one marketing in both acquisition and retention.
“We still believe in the business and intend to grow,” he said. “This was just a prudent move in the current economic environment, and by no means a forestalling of our growth plan.”
Management teams from the three affected facilities will be consolidated into the Hamburg site, which will remain open. The Orwigsburg site will stay open as a two-shift warehousing operation with about six employees. The Reading site will close.