US-based packaging supplier Bemis is set to restructure its company and cost savings programme to improve operating efficiency and profitability.
Under its new initiatives, the company will aim to optimise its manufacturing capacity by closing one of its facilities this year and a second in 2018.
The company expects to save nearly $10m through the closure of the facilities, the operations of which will be transferred to other Bemis locations.
Bemis will also reduce its administrative support cost structure by reducing its workforce by nearly 300 over the next three years.
Affected employees will receive job placement assistance and severance benefits to assist in their transition.
The company expects to save an additional $20m through this initiative.
Bemis Company president and CEO William Austen said: “Improving the performance of our US packaging business is a key priority in creating value for our shareholders.
“During April, we began a review to align our US manufacturing and administrative cost structures with the demands of our customer base to better position the company in the current environment and for its long-term success.
“Given the challenges in the Brazilian economic environment, we also expanded the scope of our review to include our entire global business.
“We are targeting a total company cost savings plan of $55m to $60m as we create a more agile, streamlined, and efficient business that is well-positioned for the long-term.”
The company said it will provide additional details under its targeted savings plan in the following quarters as part of its regular earnings reporting cycle.