Horizon plans to eliminate 70 jobs
Horizon Lines Inc. said it planned to reduce its non-union workforce by at least 10 percent, eliminating at least 70 of 700 jobs as part of an effort to reduce annual labor costs $7 million to $10 million.
The company will offer a voluntary severance program to certain employees, but said if it is unable to achieve anticipated reductions, it will lay off workers.
Horizon said it expects to complete staff reduction by the end of January, and said it is expected to result in a charge against earnings in the fourth quarter of $3.5 million to $5 million pretax.
“We continue to face a very difficult macroeconomic environment that is having a significant adverse impact on the markets we serve,” said Chuck Raymond, chairman, president and chief executive officer. “We expect these challenges to continue through at least 2009 and are taking the appropriate, necessary steps to adjust our business without impacting our ability to continue providing excellent service to all our customers and execute our business strategy.”
The company will also “evaluate all other non-personnel aspects of our business and assess additional restructuring opportunities to remove costs from our system,” Raymond said.
Horizon Lines operates container services to and from Alaska, Hawaii, Guam, Micronesia and Puerto Rico and offers a range of logistics services.