Chicago's USG to cut more jobs

USG Corp., North America's largest maker of gypsum wallboard, plans further cuts to its salaried workforce as the company reduces costs to adjust for falling demand amid the global recession.

The workforce reduction will result in charges of $3 million to $5 million, Chicago-based USG said today in a U.S. regulatory filing. Robert Williams, company spokesman, said USG doesn't know yet how many workers will lose their jobs.

The cuts are part of a plan that will reduce costs by 5 percent and save as much as $35 million annually. USG will offer voluntary severance packages and said an involuntary separation program may be needed. The program will be mostly completed by the end of June.

The company eliminated 1,400 salaried positions last year and now has about 12,700 employees, Williams said. USG fell $1.53, or 9 percent, to $15.53 at 1:41 p.m. in New York Stock Exchange composite trading.

Demand for wallboard has fallen since the U.S. housing market began declining in 2006. USG has shut more than 3 billion square feet of wallboard capacity by closing or idling 11 production lines. The company also has shut three paper mills, a cement board line and closed 60 L&W distribution centers, Williams said.

About $350 million in costs have been trimmed since the housing recession began, Williams said. Today's cost cuts will be spread across the company and don't include more capacity reductions.