Quad/Graphics furloughs employees, temporarily cuts salaries and suspends operations at several plants
April 7, 2020
WISCONSIN (From news reports) -- Quad/Graphics Inc. said it has temporarily furloughed employees throughout the company and suspended operations at a number of its plants.
The company -- which will continue to pay for medical benefits for furloughed employees -- did not disclose how many employees are affected by the move.
Quad also said it was temporarily reducing the salaries of 300 employees, including a 50% salary reduction for its CEO and a 35% reduction for executive officers.
In addition, the company's board is reducing directors' fees by 50%.
Other moves by the company include:
Delaying capital spending projects. Borrowing $100 million under an existing credit facility, incrasing its cash on hand to approximately $200 million to ensure continued financial flexibility. Suspending its quarterly dividend of $.15 a share. Quad also said it is withdrawing its financial guidance for 2020.
"We have faced tough times before and persevered," Joel Quadracci, Quad's chairman, president and CEO, said in a statement. "While the COVID-19 pandemic is unique and presents uncertainty, I am confident in our ability to find a better way and weather this storm."
Quad employed 8,000 people in Wisconsin in July. The company operates large plants in Sussex, Hartford, Lomira and West Allis.