Weymouth steel


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Weymouth steel

  1. 1. 1 Weymouth Steel, Inc. Memo To: Weymouth Steel Staff From:Carl Weymouth (Kimberly Bak) Date: February 27, 2012 Re: Weymouth Steel Cutbacks Weymouth Steel Cutbacks Weymouth Steel’s goal is to be one of the most prosperous and leading steel companies in the United States. Currently, the company is facing a variety of financial difficulties due to competition disadvantages with overseas markets. Last year, our net income profits were not indicative of our company’s standards. Our plant will also need to experience several innovations to gain more capital in the company and comply with anti-pollution standards. These financial and economic problems have forced the company to make some serious long-term decisions. In order to cut substantial costs, Weymouth Steel will be laying off a number of salaried and hourly employees. After careful evaluation, Weymouth Steel estimates that 8,000 salaried and 40,000 hourly employees will continue with their normal jobs. In addition, salaried employees will receive a pay increase and improved benefits such as health and retirement options. Weymouth Steel will also be installing new processing machines and will build the most efficient hot-strip mills to compete with European and Japanese markets. The downsizing of employees was one of the last resorts for the company. We looked at all the options and determined these decisions were the greatest of importance in order to be successful as business expects to decline 25% over the next eight months. Weymouth Steel needs to reduce 2,000 salaried employees and 10,000 hourly workers in order to compete with overseas markets. The overseas markets are able to be more prosperous with cheaper labor and efficient machines. Weymouth Steel sees a prosperous future with these new changes. We feel we will be able to compete with the European and Japanese markets with our new machinery and the changes in the number of employees. We believe our sales and profits will continue to increase over the next several years. Carl Weymouth