Office furniture maker Steelcase (SCS) - Get Steelcase Inc. Class A Report announced Tuesday a series of permanent changes to its Americas segment including a cut of 300 salaried employees, approximately 8% of the company's total workforce.
The cost structure changes also include the early retirements of around 160 employees. In addition, 65 workers volunteered to switch to part-time positions or agreed to temporary layoffs of three to six months.
Steelcase also announced it would reinstate most of its workforce to a full base pay. This change will be adopted at different dates in each country where the company hires, but became effective on Monday for U.S. workers.
The company temporarily had laid off nearly all its salaried workers worldwide back in March in response to government restrictions due to the coronavirus pandemic.
The company estimated restructuring costs from the workforce reductions of about $30 million in its fiscal second and third quarters.
“Making these types of permanent reductions to our cost structure is something we hoped to avoid, but they became necessary as demand levels in the Americas have continued to reflect the impact of the COVID-19 pandemic,” said Jim Keane, Steelcase president and CEO, in a statement.
“Throughout this crisis, our customers have sought us out for our research and knowledge, and our employees have served our customers while receiving significantly reduced pay. Our employees have been returning to our offices, where innovation efforts are ongoing and organizational energy is fully behind helping our customers transform their workplaces."
Steelcase shares were down 0.57% to $10.39 in trading Tuesday.