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Office Max To Eliminate 245 North American Jobs

11/14/2008 11:56:00 AM Eastern

Naperville, Ill. — OfficeMax today announced it is eliminating about 245 corporate staff and field management positions in its North American operation as part of its ongoing efforts to reduce operating costs in the face of a challenging economic climate.

The company estimates this latest action will reduce its ongoing operating costs by approximately $20 million with a related severance cost of approximately $8.5 million.

“Challenging economic conditions require we take proactive steps to maintain a solid business position that will support long-term growth,” said Sam Duncan, chairman and CEO of OfficeMax. “The decision to reduce staff is difficult, but it is a necessary and realistic response to the environment we are operating in.”

The company said its other recent moves to “refine its operations and increase cost efficiencies” include a reorganization of its retail management structure that reduced store management and reallocated payroll to key selling positions. The company also said it had recently announced that it does not expect to have net new retail store growth in 2009, and has delayed its store remodel program until economic conditions improve.