Libbey Announces Cost Reduction Measures
Libbey Inc. recently announced modifications to retirement benefits for its U.S. salaried associates and an additional reduction in force of its U.S. salaried staff, bringing the total planned reduction, including those announced in July, to approximately 9% of its global managerial, professional, and administrative workforce. The benefits and staffing changes announced this quarter are estimated to reduce annual expenses by more than $10 million annually.
To address rising pension costs, Libbey reports it will freeze company contributions to its cash balance pension plan for U.S. salaried associates as of January 1, 2013. All pension plan participants will retain their accrued pension benefits. Salaried associates will be offered an improved 401(k) benefit that includes an increased company match. Effective December 31, Libbey will also end its existing healthcare benefit for salaried retirees age 65 and older, and instead provide a Retiree Health Reimbursement Arrangement (RHRA) that supports retirees in purchasing a Medicare plan that meets their needs.
“These changes represent an important step in reducing U.S. costs and will further strengthen our balance sheet and financial position,” said Stephanie Streeter, CEO. “We are committed to making our operations as efficient as possible, while still offering associates and retirees competitive benefits. We have achieved both with these benefits changes.”
For additional information, visit www.libbey.com.