By Anthony Capkun
July 10, 2014 – General Cable Corp. says it is implementing a restructuring program designed to improve profitability and return on invested capital in each of its three reportable segments.
“While we strongly believe our business is well positioned for the long term, we are continuing to face ongoing challenges in certain end markets and persistently uneven global demand and pricing,” said Gregory B. Kenny, president and CEO.
The program is expected to result in ongoing annual savings of about $75 million, beginning this year with full realization starting early 2016. The restructuring program focuses on the closure of “certain underperforming assets” as well as the “consolidation and realignment of other facilities”. The company is also implementing reductions in selling, general and administrative (SG&A) expenses globally.
The restructuring program’s actions are anticipated to result in the elimination of about 1000 positions globally, representing about 7% of the company’s workforce.
“While these are difficult decisions that affect the lives of our employees, we believe these actions are essential to improving both the near-term performance as well as assuring the long-term success of the company,” added Kenny. “We appreciate the contributions of all of our employees, and will support those impacted during this time of transition.”