Graco Inc. (www.graco.com), a supplier of fluid handling technologies and systems design expertise, is cutting 6 percent of its global workforce, as it attempts to align operations with current market and economic conditions, according to a report by the company.
The company says its fourth-quarter incoming order rates remain 15 percent to 20 percent below the comparable 2007 period (measured at consistent exchange
rates). Graco’s workforce reduction will affect approximately 150 people, resulting in a pretax charge of $5 million related to severance and early retirement costs in the fourth quarter of 2008.
The workforce reduction is expected to be complete by early 2009 and is expected to lower the company’s cost structure $9 million. The company says it is also reducing capital expenditures and discretionary spending to further control costs.