Interface announces new restructuring plan, eliminates 200 staff positions
In a regulatory 8-k filing, Interface stated: "On December 28, 2018, Interface committed to a new restructuring plan as part of its continuing efforts to improve efficiencies and streamline operations to more closely align its operating structure with its business and value creation strategy. The plan involves (i) a reduction of approximately 200 positions globally and (ii) the write-down of certain obsolete, underutilized and impaired information technology and manufacturing assets. As a result of this plan, the Company expects to incur a pre-tax restructuring and asset impairment charge in the fourth quarter of 2018 of approximately $22.0 million. The restructuring plan is expected to be substantially complete in the first half of 2019. The plan is expected to yield gross annual savings of approximately $12.5 million, however; the Company expects to redeploy essentially all of the anticipated savings toward the funding of sales and strategic growth initiatives and those investments will start in 2019 yielding negligible net savings on the Company's income statement."