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Waste Management announces additional cost-cutting measures

On June 30, 2003, Waste Management, Inc., with headquarters in Houston, Texas, announced the reduction of approxima...


On June 30, 2003, Waste Management, Inc., with headquarters in Houston, Texas, announced the reduction of approximately 600 employee and 200 contract worker positions in its continuing effort to streamline costs. This follows a recent reduction in the company’s number of market areas in Canada and the U.S. from 91 to 66 and to reduce certain other overhead positions. That action led to a closer examination of Waste Management’s organizational structure.

According to Maurice Myers, chairman, president and CEO of Waste Management, Inc., roll-off volumes (a key indicator of industrial and construction growth) are showing seasonal improvement but have been running approximately 0.5 per cent to 2.0 per cent lower than last year in the company’s four primary business groups.

In addition to the realignment efforts, improvements to the company’s financial systems and processes now allow it to reduce its finance and information technology staffs. Among those affected are mid- and senior-level managers in the operations, finance and billing departments. The reduction in workforce will result in an estimated $20-million in 2003 pre-tax cost reductions, $50-million annualized, and a charge to earnings of approximately $20-million pre-tax will be recorded in the second quarter to cover severance and related costs.

For further information, contact Sarah Simpson at 713-394-2154


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