Quad/Graphics announced that 550 of its employees will lose their jobs this week in five states, as the company reduces printing production capacity in the face of declining demand.
Administrative and production positions will be eliminated at nine printing plants. The job cuts equal about 5.6% of the company’s domestic workforce.
Quad/Graphics has about 9,800 employees and $2.2 billion in annual sales.
“There is need to be an industry-wide reduction in capacity. It’s clear that this economic downturn is going to be much longer and more severe than we had expected, and so we are taking appropriate and prudent steps to reset our own capacity,” said in a statement, Joel Quadracci, president and CEO.
The cutbacks spread among plants nationwide are more or less the equivalent of shutting down one plant’s worth of printing capacity.
Redundant capacity is being removed and equipment shutdown throughout the company’s network of plants, according to Quadracci.
Work quality, turnaround times and overall service for customers will not be affected as a result of the capacity reductions, he says.
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