GRAND RAPIDS, MI – Steelcase Inc. announced additional actions to further reduce costs amid continuing global economic challenges. These measures primarily include reductions to employee and executive compensation and changes in retirement benefit programs.
Effective March 2, the company will implement a five percent reduction in base salaries for its North American salaried workforce generally, and larger reductions for certain levels of management and executive officers. In a similar spirit, the Board of Directors have voluntarily reduced their annual fees. The company announced that for fiscal 2010, it will suspend its discretionary matching contribution under the Steelcase Inc. Retirement Plan and is planning a reduced annual non-discretionary contribution to the plan.
These actions are projected to remain in effect for approximately one year or until economic conditions improve. The company estimates it will reduce annualized pre-tax operating costs by approximately $25 to $30 million, during the time these actions remain effective.
In addition, the company expects to begin laying off approximately 300 of the 600 members of its North American hourly workforce who were previously notified of a potential lay-off in November 2008 and January 2009.
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