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November 5, 2012Republic Services Inc. is restructuring operations around the country, cutting jobs and both the number of regional offices and the number of more localized, area operations.
Solid waste management companies are often organized on regional, area and then local district levels.
Republic Services late in the afternoon of Oct. 31 confirmed that the company is reducing its regional offices from four to three and its area offices from 28 to 20.
The Phoenix-based company also eliminated jobs in the corporate offices. Spokeswoman Peg Mulloy, minutes ago, confirmed jobs were lost in Phoenix, but said she did not have a number.
A regional office in the San Francisco Bay area is closing and being replaced by one in Phoenix. The company’s Indianapolis office is remaining open, and the company’s regional office in the East is moving from Centerville, Va., to Charlotte, N.C., Mulloy said. A regional office in Houston is closing and not being replaced.
News of the job losses and restructuring come as Republic Services prepares for the release of third-quarter earnings after the market closes on Nov. 1. The company has scheduled a conference call to discuss earnings at 5 p.m. (EDT) the same day to discuss those results.
Republic Services’ restructuring comes during the same year as Waste Management Inc. made a similar move in an effort to cut costs.
Waste Management Inc., on its on quarterly conference call on Oct. 30, said it expects to save $130 million next year through those changes announced in July.
Waste Management, at that time, eliminated an entire layer of management at what it calls the group, or regional level, and cut the number of areas, which were previously below the group level, from 22 to 17. Counting cuts at the corporate office, Waste Management said it was eliminating about 700 jobs.
“The reorganization that we announced at the end of the second quarter is progressing as expected. During the third quarter we had approximately $9 million in savings and we expect to see about $20 million in savings for the fourth quarter. This puts on track to achieve the full $130 million in annual savings anticipated for 2013,” Waste Management CEO David P. Steiner said during a conference call to discuss his company’s earnings.
Mulloy said she is the person responsible for handling media inquiries regarding the restructuring, but said she did not have information about the overall number of jobs being lost. The source familiar with the situation indicated that 50 jobs were lost in Phoenix, but that number could not be confirmed.
Republic Services is the second–largest solid waste management company in the United States behind Waste Management. The company has 30,000 employees in 39 states, according to its website.
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