It is reported that Gibraltar Industries has made significant cuts in its headquarters staff as it reels from the deep slumps in its main construction and automotive markets. As per report, Gibraltar is making the cuts to stem what company officials have predicted will be further losses during the current quarter.

Gibraltar lost USD 22 million during the fourth quarter as the steep decline in its key automotive and housing markets cut the company’s sales by 11%. To conserve its cash, it had last month suspended its 20 cent per share annual dividend to save USD 6 million and is cutting capital spending. With demand down, many of the company’s facilities are operating only one shift or are running on a shortened work week.

The executives also said that they were looking for even more ways to reduce costs to pay down its USD 356 million debt load. Gibraltar executives said last month they believe they will be able to meet all of its loan covenants this year, even if volumes fall by as much as 30%.

The job cuts continue Gibraltar's aggressive efforts to streamline its business since September 2007. Those efforts have led to the closing or consolidation of 25 facilities, mainly distribution centers and a 28% reduction in a work force that numbered around 3,000 last month. The consolidation included the closing the company's Military Road steel processing plant and shifting that work between another facility on Walden Avenue in Cheektowaga and one in Cleveland.

(Sourced from buffnews.com)