850 jobs go at MeadWestvaco

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MeadWestvaco is to cut up to 850 jobs in the wake of its Q2 results, in which it posted a net loss of $83 million, down from a net income of $47 million in Q2 2004. The company has also developed a new business model that is expected to lower general and administrative costs by $200 million per year by 2007.

 

Net sales came in at $1.59 billion, from $1.56 a year ago. Sales in the consumer and office products segment were $297 million from $302 million last year. The company also completed the sale of its printing and writing papers business for $2.2 billion in Q2.

 

Chairman/CEO John Luke said: "With the sale of the papers business, we gained focus and enhanced our financial flexibility. We are convinced that over the next few years we can develop a more efficient and responsive organisation, improve our internal processes and reduce our overall cost structure."