Steelcase plans job cuts on ‘lower-than-expected return-to-office trends’

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Steelcase Inc. SCS, -1.28% on Wednesday said it planned to cut up to 180 salaried positions in the third quarter, citing a “recent volume decline in our incoming orders and lower-than-expected return-to-office trends in the Americas.” The maker of furniture and other supplies for offices, hospitals and classrooms said the move was part of an effort to target around $20 million of annualized spending during the quarter. The positions to be eliminated were in Steelcase’s core Americas business and corporate roles. Steelcase, based in Grand Rapids, Mich., has around 11,800 employees, according to its annual report filed in April. For its fiscal second quarter, Steelcase reported net income of $19.6 million, or 17 cents a share, compared to $24.7 million and 21 cents a share, respectively, in the year-earlier period. Sales were $863.3 million, compared to $724.8 million in the year-earlier period. Adjusted earnings per share were 21 cents a share, compared to 23 cents a year ago. Analysts polled by FactSet expected adjusted earnings per share of 12 cents, on sales of $884 million. The company forecast fiscal third-quarter sales of $825 million to $850 million, with adjusted per-share profit of 17 cents to 21 cents. FactSet forecast earnings of 22 cents per share for that quarter, with sales of $858 million. Management said orders for the first three weeks of the third quarter fell around 20% compared to the year-ago period, and the company lowered its quarterly dividend. Shares fell 2.6% after hours.

This article was originally published by Marketwatch.com. Read the original article here.

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