FAIRLAWN, Ohio—A. Schulman Inc. will eliminate approximately 60 positions, mainly from its middle management ranks, the company announced Nov. 14 in a filing with the Securities and Exchange Commission.
The supplier of plastic compounds and resins said the moves are part of Schulman's restructuring, following some recent losses and the August ouster of its former CEO, Bernard Rzepka.
While Schulman did not put a date on when the cuts will take effect, it did say it expects to realize annual savings of between $5 million and $6 million per year, and to book partial-year savings from the cuts when its fiscal year ends next Aug. 31.
Locally, the effects will be minimal. Schulman spokeswoman Jennifer Beeman said most of the reductions will impact the company's operations in Europe and that no more than three people at the company's local operations will be affected by the cuts. Those local employees may also be offered positions with the company, she said.
Schulman also said it "anticipates recording pre-tax restructuring charges of $9 million to $11 million for employee termination benefits and other costs to be paid in cash" as a result of the cuts.
Schulman said it will cut 42 positions from its Europe, Middle East and Africa businesses, another 15 from its U.S. and Canadian business lines, with three more cuts to the ranks working in its Asia-Pacific and Latin American businesses.