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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