¡°We all recognize that downward rate pressure is a concern,¡± said a company spokesman. ¡°This is just one more way to address the issue.¡±
Spokesmen told LM that so far, the ¡°non-union workforce restructuring initiative¡± is strictly voluntary.
In a statement, Horizon¡¯s chairman, president and CEO, Chuck Raymond, said that the carrier is continuing to evaluate all other non-personnel aspects of its business and assess additional restructuring opportunities to remove costs.
¡°We continue to face a very difficult macro-economic environment that is having a significant adverse impact on the markets we serve,¡± said Raymond. ¡°We expect these challenges to continue through at least 2009¡.¡±
The company intends to reduce its workforce by at least 10 percent, or approximately 70 of its 700-plus non-union employees. Initially, it will offer a voluntary severance program to certain eligible non-union employees. If the company is unable to achieve anticipated reductions from the that program, it intends to implement an involuntary severance program for non-union employees.
Horizon expects to complete the workforce reduction initiative by January 31, 2009, and it is expected to result in a fourth-quarter 2008 charge of approximately $3.5 million to $5 million pretax, or $0.11 to $0.16 per fully diluted share. The final annualized savings and associated costs of the initiative will depend on the actual mix of workers who are ultimately included in either the voluntary or involuntary program.
¡°We also are continuing to evaluate all other non-personnel aspects of our business and assess additional restructuring opportunities to remove costs from our system,¡± said Raymond.
