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Du Pont Forms Unit Solely for Newspapers; Corporation Says Camex Not Likely to Be Hit Again in Latest Round of Cutbacks
Du Pont forms unit solely for newspapers
Corporation says Camex not likely to be hit again in latest round of cutbacks
The dust seems to have settled at Du Pont, leaving a clearer picture of how it will manage its acquired resources for the newspaper industry and how it will approach that market.
After continuing management restructuring within its expanded printing-related businesses, then the summer departure of Camex president Tom Hagan and a second round of layoffs at the company he founded, Du Pont seems to have stabilized and organized its approach to newspaper customers, consolidating marketing of newspaper-related technologies in a new business unit.
Establishment of Du Pont Newspaper Publishing Systems was announced last month several days after the Du Pont Co. said it would cut $340 million in costs at its Electronics, Imaging Systems and Medical Products units, occasioning reductions of more than 2,000 jobs.
The cutbacks are part of a billion-dollar cost-cutting program announced in July, when the company reported quarterly earnings had declined by 21%.
That same month, Hagan resigned as president of Camex, which, since its acquisition by Du Pont, had assumed responsibility for all electronic products for newspaper publishing, including those of Crosfield and ImagiTex.
Shortly after Hagan left, Du Pont laid off 70 at Camex, a quarter of its work force. It also closed shop at its Design Technologies plant in California.
Asked if the recently announced cutbacks at three business units would further shrink Camex, a Du Pont spokeswoman said, "I doubt it. There are certain groups that it will not impact." She added that the cost-cutting drive in newspaper product areas was initiated independently of and before the announced billion-dollar restructuring of the parent corporation.
"They felt as if they really needed to start doing some things to help reduce costs and try to become leaner and more competitive," she continued.
Citing the recognition of certain "redundancies" and "overlaps," the spokeswoman added, "They're part of the natural outflow of our acquisitions, which started a couple of years ago. …