Rayovac Restructures, Cuts 14% Of Workforce
By Jeff Malester -- TWICE, 11/11/2002
Madison, Wis. — Launching a series of initiatives to position itself for the future and to optimize global resources, battery maker Rayovac is scaling back, then closing operations at its Middleton, Wis. distribution center and its packaging center here. The two operations will be combined by June 2003 in a new $20 million facility in Dixon, Ill., which will service the majority of Rayovac's U.S. customer base.
In addition, the company anticipates a series of worldwide sales, marketing, operations and administrative restructuring initiatives, expected to result in a 14 percent reduction (630 people) in its current overall workforce. Rayovac said it is attempting to eliminate work duplications created when it purchased German consumer battery maker Varta.
The company will take a restructuring charge of about $20 million in the first quarter of fiscal 2003, and between $10 million to $15 million to be recorded as incurred. Cost savings are expected to be in the range of $35 million to $40 million when fully realized in fiscal 2005.
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