The 310,000-square-foot MeadWestvaco headquarters building. (Photo by Mark Robinson)
A Richmond Fortune 500 company is laying off dozens of local workers.
MeadWestvaco said Tuesday that it is cutting 500 to 550 jobs worldwide, including about 125 locally.
Cuts at the downtown-based packaging and specialty chemical giant began in January and will continue through March, said Tucker McNeil, director of corporate communications.
A “substantial majority” of the 125 or so planned Richmond eliminations have been announced internally, including some on Tuesday, McNeil said.
“This is an ongoing process to restructure the company to be more competitive and profitable,” McNeil said in an email.
McNeil said some employees left the company immediately and some are staying on during a transition period. Severance and outplacement services will be provided, he said.
One of this week’s departures came from the company’s executive ranks.
MWV disclosed in an SEC filing that James A. Buzzard is no longer president. Buzzard will remain an employee until March 31, the filing said. McNeil would not elaborate on the change in Buzzard’s status.
MWV had about 850 employees in Richmond and about 16,000 worldwide before the cutbacks.
It first disclosed potential cuts in January, when it announced a plan to increase earnings and profitability. The company expects savings from the plan of $100 million to $125 million.
The company reported net income of $320 million for 2013, up from $153 million in 2012. Its net sales were $5.38 billion last year, an increase of about $100 million from 2012.
It cut a major deal in December when it sold 501,000 acres of forestlands across the United States for $1.1 billion to Plum Creek Timber Company.
MeadWestvaco was formed in 2001 when Westvaco Corp. combined with the Mead Corp. It moved its headquarters from Connecticut to the Richmond area in 2006, ultimately landing at its 310,000-square-foot riverfront headquarters at 501 S. Fifth St. downtown in 2010. That building, which MWV leases, was sold last year in a nine-figure deal.
MWV also keeps a 48,000-square-foot, $13 million facility in Eastern Henrico.
The 310,000-square-foot MeadWestvaco headquarters building. (Photo by Mark Robinson)
A Richmond Fortune 500 company is laying off dozens of local workers.
MeadWestvaco said Tuesday that it is cutting 500 to 550 jobs worldwide, including about 125 locally.
Cuts at the downtown-based packaging and specialty chemical giant began in January and will continue through March, said Tucker McNeil, director of corporate communications.
A “substantial majority” of the 125 or so planned Richmond eliminations have been announced internally, including some on Tuesday, McNeil said.
“This is an ongoing process to restructure the company to be more competitive and profitable,” McNeil said in an email.
McNeil said some employees left the company immediately and some are staying on during a transition period. Severance and outplacement services will be provided, he said.
One of this week’s departures came from the company’s executive ranks.
MWV disclosed in an SEC filing that James A. Buzzard is no longer president. Buzzard will remain an employee until March 31, the filing said. McNeil would not elaborate on the change in Buzzard’s status.
MWV had about 850 employees in Richmond and about 16,000 worldwide before the cutbacks.
It first disclosed potential cuts in January, when it announced a plan to increase earnings and profitability. The company expects savings from the plan of $100 million to $125 million.
The company reported net income of $320 million for 2013, up from $153 million in 2012. Its net sales were $5.38 billion last year, an increase of about $100 million from 2012.
It cut a major deal in December when it sold 501,000 acres of forestlands across the United States for $1.1 billion to Plum Creek Timber Company.
MeadWestvaco was formed in 2001 when Westvaco Corp. combined with the Mead Corp. It moved its headquarters from Connecticut to the Richmond area in 2006, ultimately landing at its 310,000-square-foot riverfront headquarters at 501 S. Fifth St. downtown in 2010. That building, which MWV leases, was sold last year in a nine-figure deal.
MWV also keeps a 48,000-square-foot, $13 million facility in Eastern Henrico.
Can we get the facts vs the “pr” story. Over 250 lost their jobs for “cost cutting”. While the board sits back and receives 2013 bonus. Meanwhile the workers who met goals , and hoped to keep their kids in college were told, ” Sorry. No bonus, we know you earned it but …..” And by the way thanks for your service here is your severance. And we wonder why there is income inequality.
Oh, and by the way – how many of these job cuts will actually be replaced by jobs overseas?? Hmmm…
So, you dropped my first comment for an inappropriate word. Here’s the revised version: Wait a minute — their net income more than doubled from 2012 to 2013 and they increased their sales by $100 million but they’re laying people off so they can be more competitive and profitable??? Did I misunderstand that? Because if what I just wrote is true, I’d find a job somewhere else and take my loyalty elsewhere. Let them use their profit to find someone else to cover the work I would’ve done up until the end. Reasonable profit is one thing, but this sounds… Read more »
Sharon, who are you to determine what is reasonable profit and “plain ol’ greed”?