Andrew Macklin | Wood Business: Fortress Paper Ltd. announced that it has approved an employee reduction plan that will result in a reduction of approximately 16 per cent of the salaried staff in the Company's dissolving pulp segment, including senior management, middle management, and clerical staff.
The impact in cost savings is estimated at approximately $2.2 million per annum. These layoffs resulted from a management directive to immediately reduce labour costs as part of a comprehensive cost reduction initiative undertaken in response to the challenging dissolving pulp market.
"Fortress Paper is facing extremely difficult market conditions for dissolving pulp and we firmly believe in the need to be proactive to control our future," stated Chadwick Wasilenkoff, chief executive officer of Fortress Paper. "The reduction in labour costs announced today is anticipated to save the Company over $2 million per year and is representative of management's efforts to improve the efficiency of the Company. While layoffs are unfortunate, they are a necessary and prudent measure in these difficult times."