Libbey Inc., one of the world’s largest glass tableware manufacturers, today announced an organizational realignment plan that is expected to reduce annual pre-tax run-rate costs by approximately 9 – 11 million USD.
The plan focuses on transformational actions and structural changes to lower the Company’s cost base, improve its financial performance and cash flow generation, and create a simplified organization best positioned to deliver against its key financial and operational priorities.
These priorities, which include leveraging digital marketing capabilities to reach and influence distributors and end users, driving growth in under penetrated segments of food service, continuing the business transformation enabled by ERP, and optimization of our global supply chain, are intended to drive operating performance improvement and growth over the next several years.
The plan includes the following actions:
- Transition to a global, functionally aligned organization to better leverage expertise and scale.
- Centralize manufacturing operations and supply chain management to optimize and leverage capabilities and capacity across the global network.
- Integrate key e-commerce functions into our core business, resulting in a more efficient omni-channel commercial operating structure as well as the creation of a new global marketing organization to drive efficiencies and better leverage digital marketing capabilities across our top foodservice distribution and retail customers.
- Decrease the number of layers and broaden managers’ spans of control to simplify decision making and improve agility and responsiveness.
- Leverage our extensive sales and channel expertise to drive synergies and growth across Libbey’s United States & Canada and Latin America regions.
In connection with the organizational realignment plan, the Board has approved the appointment of James C. (Jim) Burmeister to the additional role of senior vice president, chief operating officer, effective October 1, 2019. While the Company conducts a search for a new chief financial officer, Mr. Burmeister will continue in his current role as the Company’s senior vice president, chief financial officer. In his expanded role, Mr. Burmeister will have primary responsibility for the Company’s manufacturing, engineering and supply chain operations, in addition to his continuing responsibilities for the Company’s accounting, finance and information technology functions, and will provide focused leadership to leverage and optimize our global supply chain.
“Libbey is taking decisive actions to transform our business. The actions we announced today are indicative of our strong commitment to driving improved performance and delivering consistent profitable growth,” said Michael P. Bauer, chief executive officer, Libbey Inc. “Over the past several months, we have been refining our strategy and developing action plans around our key business priorities. We are taking significant steps to realign and right-size our organization around our most profitable businesses and opportunities. The actions we’ve taken are meaningful steps forward in our strategic development, and we are confident that execution against these plans will drive enhanced operational performance and deliver consistent and profitable growth for the long-term.”