Russell Corp. Restructures for Long-Term Competitiveness

The Russell Corporation recently outlined a major restructuring effort designed to remain competitive in today's global marketplace.

The combination of focused marketing efforts, improved asset utilization and efficiency improvements should lead to increased sales, higher margins and improved profitability. Among a long list of goals, Russell's restructuring efforts include:

The continued shift offshore of textile/apparel manufacturing operations, expected to result in pre-tax savings of $22 million to $25 million annually. The completion of operational changes to Huffy Sports' backboard business, projected to reduce costs by approximately $5 million on a pre-tax basis. Reorganization of sales and marketing within the Russell Athletic Group.

"We must move quickly to achieve lower costs, both in our operations and in our support areas," says Chairman and CEO Jack Ward. Restructuring plans will impact an estimated 2,300 positions globally -- including 1,700 in the United States -- of which 1,200 will eventually be replaced in Honduras and Mexico.