NAPERVILLE, Ill., Nov. 13 /PRNewswire/ -- OfficeMax Incorporated
(NYSE: OMX) today announced that, as part of its ongoing efforts to reduce
operating costs in the current challenging economic climate, the company is
eliminating approximately 245 corporate staff and field management positions
in its North American operation. The company estimates this action will
reduce ongoing operating costs by approximately $20 million with a related
severance cost of approximately $8.5 million.
"Challenging economic conditions require we take proactive steps to
maintain a solid business position that will support long-term growth," said
Sam Duncan, chairman and chief executive officer of OfficeMax. "The decision
to reduce staff is difficult, but is a necessary and realistic response to the
environment we are operating in."
OfficeMax has already taken proactive steps to refine its operations and
increase cost efficiencies, including a recent reorganization of retail
management that reduced store management and reallocated payroll to key
selling positions. The Company also recently announced that it does not
expect to have net new retail store growth in 2009, and has delayed its store
remodel program until economic conditions improve.
Forward-Looking Statements
Certain statements made in this press release and other written or oral
statements made by or on behalf of the company constitute "forward-looking
statements" within the meaning of the federal securities laws, including
statements regarding the company's future performance, as well as management's
expectations, beliefs, intentions, plans, estimates or projections relating to
the future. Management believes that these forward-looking statements are
reasonable. However, the company cannot guarantee that the impact of the
staff reduction on the company will be as described in the release, or that
its actual results will be consistent with the forward-looking statements and
you should not place undue reliance on them. These statements are based on
current expectations and speak only as of the date they are made. The company
undertakes no obligation to publicly update or revise any forward-looking
statement, whether as a result of future events, new information or otherwise.
Important factors regarding the company which may cause results to differ from
expectations are included in the company's Annual Report on Form 10-K for the
year ended December 29, 2007, under Item 1A "Risk Factors", and in the
company's other filings with the SEC.
About OfficeMax(R) Incorporated
OfficeMax Incorporated is a leader in both business-to-business and retail
office products distribution. The OfficeMax mission is simple: to help our
customers do their best work. The company provides office supplies, print and
document services through OfficeMax Impress(TM), technology products and
solutions, and furniture to large, medium and small businesses and consumers.
OfficeMax customers are served by more than 30,000 associates through direct
sales, catalogs, e-commerce and nearly 1,000 stores . For more information,
visit: http://www.officemax.com.
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