Waste Management Announces Restructuring Plan
Cost Structure Expected to be Reduced by 100 Basis Points in 2013
Jim Trevathan Appointed Chief Operating Officer
- Removal of the management layer consisting of four geographic Groups (Eastern, Midwest, Southern and Western);
- Consolidation and reduction of the number of Areas managing the core collection, disposal and recycling businesses from 22 to 17;
- Reduction of corporate support staff in order to better align their support with the needs of the operating units, while reducing costs; and
- Elimination of approximately 700 employee positions.
The Company further announced new appointments of key officers:
James E. Trevathan, Jr., previously Executive Vice President - Growth, Innovation and Field Support, has been appointed Executive Vice President and Chief Operating Officer. Jeff M. Harrisand John J. Morrishave each been appointed to the role of Senior Vice President, Field Operations. Mr. Harris was most recently Senior Vice President - Midwest Group, and Mr. Morris was most recently Chief Strategy Officer and prior to that he was Area Vice President for one of the Company's largest markets. In these roles, Messrs. Harris and Morris will oversee the 17 operating Areas.
Steiner added, "Jim Trevathan has been in a role where he had all of the operations staff that supports the field reporting to him. In order to improve the connection between that staff and field operations, it makes sense to have the persons responsible for field operations also reporting to Jim. In addition, we have two excellent executives to fill those field operations roles in
A third quarter pre-tax charge to earnings in the range of
The Company will host a conference call at
The conference call will be webcast live from the Investor Relations section of Waste Management's website http://www.wm.com. To access the conference call by telephone, please dial (877) 710-6139 approximately 10 minutes prior to the scheduled start of the call. If you are calling from outside of
A replay of the conference call will be available on the Company's website http://www.wm.com and by telephone from approximately
The Company, from time to time, provides estimates of financial and other data, comments on expectations relating to future periods and makes statements of opinion, view or belief about current and future events. This press release contains a number of such forward-looking statements, including but not limited to statements regarding the amount, timing or impact of reduction of our cost structure and cost savings, restructuring actions, workforce reductions and position eliminations and related charges, as well as statements regarding intended changes in our management structure and our operating Group and Area structure. You should view these statements with caution. They are based on the facts and circumstances known to the Company as of the date the statements are made. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those set forth in such forward-looking statements, including but not limited to, failure to successfully implement our restructuring actions and/or failure of those actions to achieve the goals and cost savings intended; business disruption and employee distraction resulting from our restructuring; changes in our organizational structure and workforce and resulting restructuring or impairment charges; failure to implement our optimization and growth initiatives and overall business strategy; increased competition; pricing actions; commodity price fluctuations; disposal alternatives and waste diversion; declining waste volumes; weakness in economic conditions; impairment charges; and negative outcomes of litigation or governmental proceedings. Please also see the Company's filings with the
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