Check printer John H. Harland to eliminate 10% of work force
By DAVID McNAUGHTON
The Atlanta Journal-Constitution
John H. Harland, best known as a check printer, on Monday said it will cut about 500 employees, or 10 percent of its work force. An undisclosed number will lose their jobs at the company's printing plant in Decatur.
The continuing decline in the use of paper checks, plus more efficient printing technology, were cited in Harland's second plant consolidation in seven years.
The decline of paper checks is expected to continue as more consumers shift to electronic banking, says the Federal Reserve, the nation's largest processor of consumer checks. A recent Fed study says about 40 billion checks were written in the United States in 2002, down from about 50 billion in 1995.
The Decatur-based company said it will close five of its 14 plants and trim some staff positions in the printing division.
In metro Atlanta, workers and equipment in a leased plant in Conyers will be moved to the company-owned Decatur plant, said spokesman John Pensec. The Conyers workers produce forms for writing checks using software like Quicken, as well as other computer-related products.
The Decatur plant workers who will be displaced print traditional bank checks. They were told Monday that they would lose their jobs.
Harland did not disclose how many people in Decatur will be out of work, or which other plants will be closed. Workers elsewhere will be told this week which plants will remain open.
Harland has its headquarters, a customer care center and a software operation in metro Atlanta in addition to the two printing plants. The company employs about 1,100 in the area.
In 1996, Harland cut its work force by about 10 percent as it scaled back from an operation that included 40 check-printing plants.
The cuts Harland announced Monday will start in the first quarter of 2004 and end in the third quarter, the company said. Severance terms were not disclosed.
The company estimated plant closing expenses at $16.3 million, with $5.5 million to be recognized this year. The staff position cuts will cost about $6 million, with a quarter of that coming this year, the company added. It estimated the total after-tax cost this year at 15 cents per share.
Harland sells checks, financial software and educational testing products. Its shares closed Monday at $25.30, off 20 cents. |
