News

Avery Dennison has announced that it will reduce its global workforce by approximately 10% as part of its restructuring programme.

The company did not disclose where the cuts would come and were unavailable to comment this morning.

The labels manufacturer predicts that it will incur an estimated $120m (£85.2m) restructuring charges, most of which will be incurred in 2009, as a result of these actions.

It follows the announcement that the company has reported a 20% year-on-year drop in total operating income, before interest and taxes, to $386.5m in 2008.

This is despite the company reporting a 6% increase in total sales for 2008 to $6.7bn, compared to the previous year.

In a webcast yesterday (27 January) a company spokesman said Avery Denison is managing the company with a "plan for the worst mentality" by reducing fixed costs, capital spending and focussing management on generating free cashflow.

The company is also still investing in "a few focused areas", all of which the spokesman said "will enable us to endure a protracted downturn if we need to".

"We are focused on increasing our operating leverage and developing new business opportunities to position the Company for strong earnings recovery when the market conditions improve," said president and chief executive Dean Scarsborough.

California-based Avery Dennison's products include pressure sensitive labelling materials, graphics imaging media, retail apparel ticketing and branding systems, RFID inlays and tags, office products, specialty tapes, and a variety of specialised labels for automotive, industrial and durable goods applications.

The company has sites in the UK in Woodburn Green, Maidenhead, Cramlington, Raunds, Great Baddow and Newtown in Wales.