Executives Shuffled in Reorganization
PHILADELPHIA (AP) _ Scott Paper Co. shuffled six executives and Tuesday said it plans layoffs as the company refocuses on its two principal businesses: cleaning products and papers for publishing.
The company announced a four-point program in January to reduce working capital, control capital spending, divest some assets and reduce costs.
The program will ″regrettably result in further employee reductions,″ chairman and chief executive officer Philip E. Lippincott said. Spokesman Michael N. Kilpatric said the jobs cuts couldn’t be specified.
The moves were intended to emphasize Scott’s two main business interests, personal care and cleaning products, and coated papers for publishing, Lippincott said.
Scott has been trying since January to divest in its food service container business; bulk non-woven business, which includes disposable diaper factories; and specialty papers business, including a Westbrook, Maine, mill and a factory in Belgium.
The company hasn’t found buyers, Kilpatric said.
Kilpatric provided no figures, but said the number of employees in these businesses have decreased through layoffs, attrition and early retirement. The company employs about 40,000 people worldwide.
Lippincott also said the company would ″develop further potential divestment options,″ which weren’t specified.
In the executive reorganization, John J. Butler, head of European operations, will become Scott’s chief administrative officer, replacing executive vice president J. Lawrence Shane, who is retiring. Butler will oversee all corporate staff.
P. Newton White, head of Scott’s Pacific operations, will head the new global ″away-from-home,″ or commercial, business.
Distribution channels for commercial products in many parts of the world are just being developed and the reorganization will help Scott take advantage of the growing business, said the spokesman, Kilpatric.
Ashok Bakhru, formerly chief financial officer, will head the newly created global wet wipes business, in addition to his duties as head of Scott’s health care business.
Clemens S. Andes Jr., formerly managing director of Scott Ltd. in the United Kingdom, becomes head of consumer business in the Pacific.
Paolo Forlin, managing director of Scott’s Italian business, also will take responsibility for consumer business in Europe.
Ellis A. Horwitz has been appointed vice president and general counsel, replacing senior vice president Norman M. Heisman, who becomes counsel to the board of directors.