Cenveo to Cut 100 Jobs

When it comes to the business of doing business many of us don’t know the names of the biggest companies out there. After all there are a lot of companies out there that do not market directly to consumers and so the average person does not know their name. Cenveo is one of those companies.

For those of you who are not familiar with the company here is a look at how they have chosen to describe themselves, “Cenveo is a world leader in the management and distribution of print and related offerings. We’re a $2-billion company with a long history of delivering top value for our customers. Headquartered in Stamford, Connecticut, our company encompasses more than two dozen entities in over 100 facilities across the U.S., as well as manufacturing operations in Asia, South America and Central America. Supporting our broad portfolio of products and services is the Cenveo hallmark: As part of the Company’s customer-first approach, we: Partner with customers, Understand their needs, Add expertise and value, Delivers innovative solutions with high quality and low cost. At Cenveo, we continue to pursue our mission of helping businesses communicate — and get the word out to customers, shareholders and employees.”

The management of Cenveo is getting ready to cut back on 100 jobs at their Kenosha location. The company is closing down an envelope-making plant in order to cut back on its costs. These layoffs will be enough to qualify as a mass layoff action under the current federal guidelines. For those of you who are not familiar with the idea of a mass layoff action here is a look at how the federal government defines the term, “The Mass Layoff Statistics (MLS) program collects reports on mass layoff actions that result in workers being separated from their jobs. Monthly mass layoff numbers are from establishments which have at least 50 initial claims for unemployment insurance (UI) filed against them during a 5-week period. Extended mass layoff numbers (issued quarterly) are from a subset of such establishments—where private sector nonfarm employers indicate that 50 or more workers were separated from their jobs for at least 31 days.”

The company recently released it second quarter fiscals, which shed some light on the reason why the company might want to layoff, “The Company generated net sales of $438.9 million for the second quarter of 2012, compared to $469.9 million for the second quarter of 2011. The decrease in net sales was primarily due to lower sales in our print and envelope product lines as a result of lower direct mail volumes from our financial services customers, the closure and consolidation of a print plant and our decision to exit certain low margin businesses. The Company generated net sales of $894.5 million for the first six months of 2012, compared to $946.9 million for the first six months of 2011. The decrease in net sales was primarily due to lower sales in our print and envelope product lines as a result of lower direct mail volumes from our financial services customers, customer product launches in the first six months of 2011 that did not repeat in the first six months of 2012, the closure and consolidation of a print plant and our decision to exit certain low margin businesses.”