Solo cups cuts nearly 100 corporate jobs

Solo Cup Company, which makes disposable cups, plates, containers and cutlery, said Friday it reduced its corporate work force by nearly 10 percent.

The Highland Park-based company eliminated approximately 100 salaried positions and 25 contract employees in response to the weakening economy. Most of the affected employees were located in corporate offices in Highland Park and Owings Mills, Md.

"This action was necessary to operate in a recessionary economy,"Solo President and CEO Robert M. Korzenski, said in a release.

"We expect economic conditions are going to get worse before they get better," said Director of Communications Angie Chaplin.

The job cuts were implemented Thursday, Dec. 4.

"It was very tough to do, especially at this time of year," Chaplin said.

Solo is known for making New York's iconic Greek blue-and-white paper coffee cups with the words "We Are Happy to Serve You."

The total work force reduction, including salaried employees and contractors, is expected to generate approximately $11 million in annualized cost reductions. The company will incur a one-time charge of approximately $1 million in severance costs. Solo's hourly manufacturing employees were not impacted.

The cuts are also connected to Solo's September announcement that the manufacturing facility in Highland Park will close by July 31. It was previously announced that the plant closing will result in the elimination of 420 full-time manufacturing positions in Highland Park. About 200 full-time jobs will be shifted to seven of Solo's other locations.

In addition, the company will relocate its headquarters to 150 S. Saunders Road, Lake Forest, during the summer of 2009. Two satellite offices in Highland Park and one in Lincolnshire will close at that time.

Solo Cup Company is a $2 billion company exclusively focused on the manufacture of single-use products used to serve food and beverages for the consumer/retail, food service and international markets. Solo has expertise in paper, plastic and foam disposables and creates brand name products under the Solo, Sweetheart and Bare by Solo names. The company was established in 1936 and has a global presence with facilities in Canada, Europe, Mexico, Panama and the U.S.