Transcontinental Cuts 460 Jobs as Mail Dips

Transcontinental Direct USA Inc. plans to eliminate 460 jobs and consolidate direct mail printing operations, because direct mail advertising has declined sharply for financial offers.

Canada’s largest printer is shutting down U.S. operations in Warminster, PA. Equipment and production are being transferred and consolidated at another plant also located in Pennsylvania.

When the consolidation is completed in January at a plant located in Hamburg, PA, Transcontinental will have a capacity to produce 3.5 billion direct mail pieces annually.

Financial institutions account for a large portion of Transcontinental’s direct mail printing customers. Turmoil affecting financial institutions is having an adverse affect on direct mail advertising programs in that sector.

“Following an extensive capacity review of our U.S. direct mail operations, Transcontinental has acted to quickly address the negative impact of current market conditions,” said in a statement Francois Olivier, president and CEO of parent company Transcontinental Inc.

Direct mail printing in the U.S. generates about 10% of the company’s total revenues. Transcontinental projected pre-tax costs associated with the restructuring will run up to $20 billion (Canadian).

Employees losing their jobs in Warminster, PA will be offered separation pay, outplacement assistance and in some instances will be able to apply for available positions in Hamburg, PA.