Additional operational measures taken across North America
In the light of rapidly evolving market conditions, Libbey has announced a series of additional actions it is taking in response to the Covid-19 pandemic.
Temporary actions announced by the international glass tableware manufacturer include implementing a pay reduction for all salaried associates in the USA and Canada through September 2020.
This includes a 25% base salary reduction for CEO Michael Bauer, 20% base salary reductions for executive officers and other vice presidents and 10% to 15% salary reductions for all other impacted associates. The Board of Directors has also reduced its cash compensation by 25%.
Temporary furloughs have been implemented for a portion of US manufacturing and distribution salaried associates, in line with the previously curtailed operations in the USA. In addition, manufacturing and distribution operations have been reduced at Libbey’s Mexico facilities, with all office staff required to work remotely.
Planned 2020 capital expenditures and expenses have been impacted, including delaying ERP implementation milestones.
Libbey has also taken significant measures across its locations in EMEA and China in line with local government regulations and the resulting downtrend to demand for its products.
These changes are in addition to the previously announced temporary shutdowns of the company's USA manufacturing facilities and retail stores and related furloughs, which have been extended into May. The company's US distribution facilities are supporting e-commerce and other customers and end users that have been designated essential businesses.