Libbey announces more layoffs, other cuts

9/13/2012

Libbey Inc. announced today additional layoffs of salaried workers, changes to the retirement benefits of U.S. salaried workers, and changes in some retirees’ healthcare benefits.

In July, the Toledo-based glass tableware company announced that it would cut about five percent of its global managerial, professional, and administrative workforce. On Thursday, it changed that to nine percent, including the reduction announced in July. The exact number of people affected was unavailable.

As of Jan. 1, 2013, the company will freeze company contributions to its cash balance pension plan for U.S. salaried workers. Pension plan participants will retain their accrued pension benefits. Libbey said it would offer salaried associates an improved 401(k) benefit that includes an increased company match.

Effective Dec. 31, the company also will end its existing healthcare benefit for salaried retirees who are 65 and older and instead provide a Retiree Health Reimbursement Arrangement that supports retirees in purchasing a Medicare plan.

Libbey said the staffing and benefits changes would reduce annual expenses by more than $10 million a year.

“Decisions to eliminate jobs are very difficult to make, but they are necessary in order to reduce our costs … and better position Libbey for the future,” Stephanie Streeter, Libbey’s chief executive officer, said in a statement released Thursday evening.