USA – Steelcase Inc., global leader in the office and institutional furniture industry, announced that it is making permanent cost structure changes in its Americas segment and corporate functions.

The actions include early retirements, voluntary separations and involuntary separations of approximately 300 salaried employees, representing approximately 8% of the company’s salaried workforce in the Americas and Corporate, as well as early retirements of approximately 160 hourly employees. In addition, 65 salaried employees have volunteered for part-time roles or temporary layoffs for periods ranging from three to six months.

The company also announced that it is restoring most of its salaried workers to their full base pay, with various effective dates on a country by country basis, including an effective date of August 31 for the U.S. workforce.

“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,” said Jim Keane, president and CEO. “Throughout this crisis, our customers have sought us out for our research and knowledge, and our employees have served our customers while receiving significantly reduced pay. Our employees have been returning to our offices, where innovation efforts are ongoing and organizational energy is fully behind helping our customers transform their workplaces.”

The company estimates the cost of reinstating salaries in the U.S. of approximately USD 20 million per quarter will be partially offset by savings of approximately USD 10 million per quarter related to the salaried workforce reductions. The company estimates it will incur restructuring costs totaling approximately USD 30 million during its second and third quarters in connection with the workforce reductions.