25 February 2013
Spicers Canada lays off 50 employees
VAUGHN, ON—Spicers Canada announced a restructuring resulting in 50 job losses. The layoffs occurred at multiple levels within the company, said Cory Turner, Spicers Canada president.

"While pleased with our progress improving our financial results, there remains a need to proactively challenge our internal cost structure," Turner said, "so that we continue to effectively deliver reliable solutions that contribute positively to our customers' success."

According to a financial report for the six-month period ending December 31, Spicers Canada earned $5.2 million before interest and taxes (EBIT), up from $3.6 million EBIT in the previous corresponding period. (All figures are in Australian dollars)

"The improvement in earnings would not be possible without an internal commitment to simplicity, and the pursuit of valued solutions that improve profitability for our customers, suppliers, and our company," Turner said.

According to a presentation last week by Dave Allen, chief executive officer of Spicers' parent company Paperlinx, the improved earnings in Canada, and also in the Australia, New Zealand and Asia (ANZA) region, helped offset Paperlinx's increased losses in Europe.

While Canada's performance was strong, the company as a whole posted a sales decline of 17% to $1.4 billion, and a loss after tax of $57.3 million versus $60.9 million the prior corresponding period.

Allen's presentation cited the impact of "legacy operation structures…that were not aligned with changing market conditions" as a factor. "Our key loss-making business in Europe is in the Netherlands and to a lesser extent Germany, and their performance is being addressed through a restructuring programme in both countries," reads Allen's presentation notes, available for download on Paperlinx.com.

Paperlinx is a distributor of fine paper, graphic arts, sign and display and industrial packaging equipment and consumables. Spicers Canada represents the entirety of its North American business, as the company sold its U.S. operations last year.
Comments:
7. David says:
11 September 2014 at 5:18 PM
What canada and we canadians DONT realise is the rest of the world is better & doing better than we are. We canadians are resting on our past laurels, WE ARE TOO SLOW, hate change, lost direction, business, employees, high wastage, aint ready for the challenges the world throws at us. Layoffs hapoen when rest of the world is better than us.
6. Norm De Plume says:
9 March 2013 at 11:02 AM
"... there remains a need to proactively challenge our internal cost structure so that we continue to effectively deliver reliable solutions that contribute positively to our customers' success." Oh, please, spare us the jargon. Is this kind of bafflegab necessary to impress your board and investors? What's wrong with "we have to cut costs to keep our prices down"?
5. Pencilpusher says:
7 March 2013 at 9:55 PM
"Buck up"?? Really? Good people do suffer because of bad decisions at the corporate level. Maybe they should lose their jobs, instead of the "good people"
4. Litho Guy says:
7 March 2013 at 12:05 PM
Guys, its nothing personal. Just business. Unfortunate yes, but people lose their jobs every day. Even good people suffer because of bad decisions at the corporate level. Buck up, get out there and show them that they made the wrong decision. Good luck to all.
3. Tym Forraise says:
5 March 2013 at 11:22 AM
Hi Tym, Well yes we were again one of the few countries to make money for the company. So I guess you want to know why I called you to my office? Well its not for a raise but to instead thank you for all your hard work and to wish you all the best. We have to let some of our great employees go so they dont have to downsize in countries where we are not making money.
2. Started In A Trade Shop says:
27 February 2013 at 7:03 PM
Let me see if I get this scenario. You dump 50 employees, then report a profit. No doubt you then reward the mangement suits that remain with bonuses in order to keep people that probably created the mess in the first place.
1. Harjojo says:
27 February 2013 at 3:36 PM
Hmmm. "I'm sorry Sam. Thanks for working so hard and contributing to our success but we are going to have to let you go because your brother Bjorn in the Netherlands didn’t do so well. Best of everything to you though".
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