Business News

OfficeMax Announces Proactive Cost Reduction Initiative

Friday 14. November 2008 - OfficeMax Incorporated (NYSE:OMX) today announced that, as part of its ongoing efforts to reduce operating costs in the current challenging economic climate, the company is eliminating approximately 245 corporate staff and field management positions in its North American operation.

The company estimates this action will reduce ongoing operating costs by approximately $20 million with a related severance cost of approximately $8.5 million.

“Challenging economic conditions require we take proactive steps to maintain a solid business position that will support long-term growth,” said Sam Duncan, chairman and chief executive officer of OfficeMax. “The decision to reduce staff is difficult, but is a necessary and realistic response to the environment we are operating in.”

OfficeMax has already taken proactive steps to refine its operations and increase cost efficiencies, including a recent reorganization of retail management that reduced store management and reallocated payroll to key selling positions. The Company also recently announced that it does not expect to have net new retail store growth in 2009, and has delayed its store remodel program until economic conditions improve.