Libbey Inc., one of the world’s largest glass tableware manufacturers, recently announced additional actions the Company is taking in response to the COVID-19 pandemic. In light of rapidly evolving market conditions, Libbey is implementing a number of additional cost reduction measures.
These temporary actions include:
Implementing a pay reduction for all salaried associates in the U.S. and Canada through September 30, 2020. This includes a 25% base salary reduction for CEO Michael Bauer, 20% base salary reductions for executive officers and other vice presidents, and 10% to 15% salary reductions for all other impacted associates. The Board of Directors has also reduced its cash compensation by 25%.
Implementing temporary furloughs for a portion of U.S. manufacturing and distribution salaried associates in line with the curtailed operations in the U.S.
Suspending the Company’s 401(k) match for U.S. employees participating in the 401(k) retirement savings plan through September 30, 2020.
Reducing manufacturing and distribution operations at its Mexico facilities and requiring all office staff to work remotely.
Reducing planned 2020 capital expenditures and expenses, including delaying ERP implementation milestones.
Libbey has also taken significant measures across its locations in EMEA and China in line with local government regulations and the resulting downtrend to demand for its products. These changes are in addition to the previously announced temporary shutdowns of the Company’s U.S. manufacturing facilities and retail stores and related furloughs, which have been extended into May. The Company’s U.S. distribution facilities are supporting e-commerce and other customers and end users that have been designated essential businesses.
“As we adapt to the impact of COVID-19, Libbey’s management team and Board of Directors are focused on business continuity and ensuring we can continue to meet the needs of our customers, employees and business partners,” said Mike Bauer, chief executive officer of Libbey. “We believe the actions we are announcing today, in addition to the previously announced changes to our U.S. operations, are necessary to help ensure the strength of our business over the long-term. We will continue to take actions to prioritize health and safety, comply with applicable government orders and respond to changes in market conditions.”
Libbey will continue to monitor COVID-19 across its global facilities and follow the guidelines established by public health officials and government authorities, including the Centers for Disease Control and Prevention (CDC). The Company will continue to evaluate the operating environment and may make adjustments to the actions outlined above as business conditions warrant.
