Steelcase announces permanent job cuts and restoration of pay to salaried workers, executives and board

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Steelcase Inc. , a maker of furniture settings and interior architectural products, said Tuesday it is cutting jobs permanently, while restoring pay to its salaried workers, executives and board members. The Grand Rapids, Michigan-based company said it will cut 300 jobs, or about 8% of its salaried workforce in the Americas, and cut about 160 hourly employees with early retirements. Another 65 salaried employees have volunteered for part-time roles or temporary layoffs for up to six months. Most salaried workers will have full base pay restored, the company said. “Making these types of permanent reductions to our cost structure is something we hoped to avoid, but they became necessary as demand levels in the Americas have continued to reflect the impact of the COVID-19 pandemic,” Chief Executive Jim Keane said in a statement. The company is expecting restored pay to cost about $20 million a quarter, partially offset by cost savings of about $10 million. The company expects to book restructuring charges of about $30 million in the second and third quarters. Shares fell 1.2% premarket and are down about 48% in the year to date, while the S&P 500 has gained 8%.
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