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St. Louis Post-Dispatch

Lee Enterprises

Thursday, June 16, 2005 10:17 PM CDT
Ampad to cut 125 jobs

By HERB MEEKER, Staff Writer

MATTOON -- American Pad & Paper announced companywide consolidation that will cut 125 jobs from the manufacturer's local facility by the end of this year.

The Ampad "downsizing" will cut jobs both in Mattoon and at the paper products manufacturing facility in Morristown, Tenn., during the next six months. This will leave about 175 workers at the Mattoon facility, said Ampad spokesman Scott Jones during a telephone interview Thursday afternoon. Ampad is a manufacturer and distributor of writing pads, filing supplies, retail envelopes and specialty papers.

"This will impact 125 people, plus or minus," said Jones. "But it is important to note we will stay committed to the Mattoon facility."

Ampad employees in Mattoon were informed of the layoffs this week. Jones said the company is implementing a human resources process based on performance reviews and other factors. Ampad has operated its industrial plant in Mattoon for about 40 years.

"We want to treat our employees fairly," Jones said. "We want to give them a running start on other opportunities in the market."

With this new round, the layoffs at Ampad in Mattoon will total 165 at minimum this year. This set of layoffs is in addition to the 40 jobs lost when the Ampad distribution center started a shutdown earlier this year.

In January, the layoffs for the local distribution center were identified as a separate downsizing. But Thursday's announcement by Ampad showed that company officials were considering more layoffs in their company. Ampad officials referred to the latest downsizing as a two-phase process for re-engineering plan as part of a companywide effort "to drive the company's viability, growth and position in the marketplace."

The layoffs are tied to the company's financial woes during the past few years. Ampad filed for bankruptcy in 2003, Jones said. He added that company executives are working on a retooling of the company for long-range growth. The company did not specify the effect on a manufacturing plant in Matamoros, Mexico.

"We are confident the new manufacturing process, which we began implementing last January, will be beneficial to all of our stakeholders, including our employees, customers, sales representatives, vendors and the communities in which we operate," stated John Bermingham, Ampad Chairman, president and CEO.

Jones said there is no clear indication on whether laid-off employees might be hired back in a year or two if the company turns its financial fortunes around.

"I wish I could predict the future," he said. "But we believe this realignment will be best for us in the long run."

Contact Herb Meeker@jg-tc.com or 238-6869.

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