Will close Boston sales and distribution center
Creo has announced that it is closing its Boston sales and distribution center, a move that will affect 140 employees. Approximately 60 positions will be moved from Boston to Vancouver, while 80 positions will be eliminated. Layoff dates are staggered, and will range from October 2004 through April 2005. Creo expects the changes to allow it to reduce expenses by approximately $2 million per quarter by the middle of 2005 fiscal year.
"We have a very competitive market and face cost pressures from the strength of the Canadian dollar and Euro. We have concluded that we must reduce expenses in order to ensure that profitability will grow with our increased revenues," said Amos Michelson, Creo CEO in the company's report on its third-quarter financials. "We are conducting a thorough review of our cost structure and spending priorities leading into the new fiscal year. As part of this effort, we will be consolidating operations and moving the Creo Americas subsidiary headquarters from Boston to Vancouver. This move will reduce costs, streamline management, and increase efficiency."
An additional Creo Boston-area office will continue to operate. This office houses additional service and sales personnel, some inkjet research and manufacturing, human resources, legal, and regional training.
Creo posted a net loss of $1.6 million for the Q3 2004, ended June 30, down $4.3 million compared to Q3 2003. Third-quarter revenue was $156.2 million, an increase of 8.8% from the same time last year. Consumables revenue reached $21.6 million this quarter, an increase of 77.5% compared to Q3 2003. (Creo: www.creo.com)