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Maytag to Relocate Hoover Headquarters from North Canton
NEWTON, Iowa -- Maytag Corp. will relocate the headquarters of its Hoover Co. subsidiary from North Canton, Ohio, as part of a comprehensive restructuring plan announced this morning. As a result of the restructuring, the company said its Hoover subsidiary will join the existing strategic business units headquartered here and will no longer operate as a subsidiary.Integration of Hoover and Maytag Appliances into the new organization will eliminate about 20% of the salaried work force, reduce Hoover's North Canton facilities to an research and development and manufacturing site, and downsize Maytag Appliances and its corporate headquarters. "This restructuring will cause hardship and challenges for many of our employees and their families," said Ralph F. Hake, Maytag chairman and chief executive officer. "Maytag Corp. has skilled and talented employees, which makes this decision so difficult. However, in order to succeed and grow, Maytag must rapidly reduce costs and improve market execution."The restructuring is expected to save $150 million annually and be completed by year end. Maytag expects to incur restructuring charges of $75 million to $100 million, Hake said. "We have selected the one-company approach as the most effective structure to go to market with our brands and innovative products, and it was determined that this approach should dramatically improve competitiveness and position us for future growth," he added.Maytag also announced today that it has lowered earnings expectations for the full year. Hake attributed the expected shortfalls to "lower than anticipated sales volume at Hoover and Maytag Appliances, coupled with lower factory volume related to balancing inventory levels, as well as higher steel and resin costs."Visit Maytag Corp. at www.maytagcorp.com"