Quad Temporarily Closing Several Plants, Furloughing Workers, Cutting Exec Salaries, And More, Due to COVID-19
Quad/Graphics, Inc. today provided a business update on its actions taken in response to the COVID-19 pandemic.
Quad has been executing business continuity plans focused on protecting the health and well-being of its employees, while also continuing to service customers, and protect the long-term financial health of the company as the COVID-19 pandemic evolves.
Among the cutbacks, CEO Joel Quadracci has taken a temporary 50% paycut.
“The health and safety of our employees remains our top priority,” said Joel Quadracci, Quad’s chairman, president, and CEO. “We have directed employees who can work from home to do so, as well as implemented additional social distancing and sanitizing precautions to ensure the safety of our employees working in essential manufacturing facilities. We have implemented a temporary furlough program throughout all areas of the company and have temporarily ceased operations at a number of our manufacturing facilities. We will continue to prioritize the health and well-being of our employees while making the tough but necessary decisions to protect the financial health of Quad. Through it all, we will continue to provide extraordinary client service and quality to quickly meet our clients changing needs and innovate new ideas to help them maintain business continuity and consumer engagement during this period of uncertainty.”
Recent COVID-19 Actions:
- Suspended all domestic and international travel;
- Implemented temporary salary reductions for over 300 leaders, including a 50% salary reduction for the CEO and a 35% reduction for the other named executive officers;
- At the recommendation of the Board of Directors, temporarily reduced directors’ fees by 50%;
- Implemented a temporary employee furlough program with company-paid medical benefits;
- Changed vacation policies;
- Suspended production at several manufacturing facilities where declining client volume or other effects of the pandemic have impacted the company’s ability to operate;
- Delayed capital spending projects; and
- Increased borrowings by $100 million under the credit facility to increase cash on hand to approximately $200 million to ensure continued financial flexibility.
Given the uncertainty of the duration of the COVID-19 pandemic, Quad is withdrawing its full-year 2020 financial guidance issued on Feb. 18, 2020. Additionally, due to uncertainty in customer demand as a result of COVID-19, the Board of Directors made the proactive decision to temporarily suspend the company’s quarterly dividend of $0.15 per share. The company remains committed to paying a dividend over the long-term and will seek to resume the dividend following stabilization of its operating environment.
Added Quadracci: “We have faced tough times before and persevered. While the COVID-19 pandemic is unique and presents uncertainty, I am confident in our ability to find a better way and weather this storm.”
The preceding press release was provided by a company unaffiliated with Printing Impressions. The views expressed within do not directly reflect the thoughts or opinions of the staff of Printing Impressions.
