ACCO Brands announces three-year restructuring plan
Strategy includes includes “rejigging” of business units.
ACCO Brands has announced a three-year restructuring and cost savings plan that includes a rejigging of its reportable business units, including its international operations.
The programme – which aims to achieve annualised savings of at least US$60 million – incorporates initiatives to “simplify and delayer the company’s operating structure and reduce costs through headcount reductions, supply chain optimisation, global footprint rationalisation and better leveraging of sourcing capabilities”.
As a result of these actions, ACCO said it will improve its speed of execution and bring key leaders closer to the customers. One of the key changes is a move to two operating and reporting segments: Americas will include the US, Canada, Brazil, Mexico and Chile, while the International segment comprises EMEA, Australia, New Zealand and Asia.
Two company veterans will head the new units. Patrick Buchenroth has been named VP of Americas. A former CFO of MeadWestvaco’s Consumer and Office Products division – acquired by ACCO in 2012 – he was most recently in charge of ACCO’s International division.
Meanwhile, EMEA president Cezary Monko (pictured) will now have responsibility for Australia, New Zealand and Asia.
“The actions we are announcing today will better position the company for long-term sustainable profitable growth,” said newly-appointed CEO Tom Tedford. “The cost reduction actions, as well as a renewed focus on innovation and new product development, will provide fuel for reinvestment and an improved growth trajectory for the long-term.”
“I remain confident in the long-term growth prospects of the company given our geographically diverse operating platform and our collection of leading brands,” he said.
ACCO said it will provide more details of the restructuring programme when it reports its 2023 earnings, most likely in mid-February.
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5 February 2024