Libbey Announces Strategic Plan for Cost Reduction
Libbey Inc. recently announced a new strategic plan designed to further strengthen its core business and enable the company to improve profitability and realize growth opportunities. The new strategy is reportedly aimed at increasing the company’s efficiency, better leveraging its key lines of business, improving service to customers and maximizing market opportunities.
“We are taking the necessary steps to ensure Libbey thrives in today’s competitive market,” said Stephanie A. Streeter, CEO. “This new strategy will build on Libbey’s long legacy and many strengths, and improve the company’s competitive position to realize new opportunities across our business.”
The strategic plan will focus on: reducing costs in North America, including reducing Selling, General and Administrative (SG&A) expenses; maximizing Libbey’s leadership in advantaged businesses, including U.S. Foodservice and Mexico Foodservice and Retail; increasing profitability and improving Libbey’s cash generation in Europe; accelerating growth in China; and making continued improvements to Libbey’s financial structure.
As part of the new strategy, Libbey announced a new regionally focused leadership structure. The company will be organized into three regions:
- The Americas, with Daniel Ibele serving as vice president and general manager for the U.S. and Canada, and Salvador Minarro serving as vice president and general manager for Mexico and Latin America.
- Europe, Middle East and Africa (EMEA); Libbey is currently conducting a search for the general manager of this region.
- Asia Pacific, with Gary Moreau serving as vice president and general manager.
Redundancies created by the reorganization are expected to result in Libbey eliminating approximately 5% of its global managerial, professional and administrative workforce. The strategic plan is slated to guide Libbey through 2015 and will be coordinated through a newly established Strategy Program Management Office, which will be led by Richard Reynolds, former Libbey CEO.
For additional information, visit www.libbey.com.