"This restructuring is especially difficult because it affects so many of our loyal, talented, and hard-working employees. However, faced with unprecedented declines in the housing market, and as difficult as it is, this restructuring is essential to streamline the Company and eliminate organizational redundancies as well as improve processes to drive new product development and sales," said Rod Hershberger, PGT's President and CEO.
The savings are the result of a combination of non-workforce related steps and a significant reduction in the Company's indirect workforce. Effective today, the Company's indirect workforce (overhead) was decreased by 17%, which equates to an 8% reduction in the Company's overall employee population. The effects of this restructuring, dovetailed with the impact of previously taken actions and employee attrition, will result in an aggregate decrease of the Company's workforce, at its facilities located in Florida and North Carolina, of approximately 23% since August, 2006. In addition to savings attributed to this reduction in workforce, the Company expects significant savings resulting from, among other things, a reduction from three manufacturing shifts to two. In total, the Company expects to realize annualized savings in excess of $16 Million.