Back.gif (1194 bytes)






P. H. Glatfelter to reduce workforce in PA and WI

Spring Grove, PA October 16, 1998—P. H. Glatfelter Company (AMEX: GLT) has announced plans to reduce the size of its workforce at its mills in Spring Grove, Pennsylvania and Neenah, Wisconsin. Employees at both mills were notified of the Company’s plans this week.

Recent challenges in the global paper industry and depressed market conditions for the Company’s products have made it necessary for the Company to generate annual payroll and benefits cost savings through a reduction in the size of its workforce at the two mills. The Company will target to decrease the size of its salaried workforce by 35 to 40 positions.

The first step in this cost reduction process will be to offer a voluntary early retirement enhancement program to salaried employees. The program, which is being announced to employees beginning today, is being offered to active eligible salaried employees age 58 and older at the two mills. The Company expects to generate annual salaried cost savings of approximately $2.5 million for a one-time charge of approximately $2.7 million, which will be expensed against fourth quarter earnings. The Company anticipates that some layoffs will be necessary in order to achieve its cost savings objectives.

Salaried employees eligible for the voluntary early retirement program will have until November 30 to choose to participate in the program. Those who elect to participate will have 7 days thereafter to reconsider. The Company will offer retirement counseling services as part of voluntary early retirement program.

Headquartered in Spring Grove, Pennsylvania, P. H. Glatfelter Company is a producer of printing and writing, tea bag, tobacco and other specialty papers. In addition to its Spring Grove, Pennsylvania facility, the Company’s U. S. operations include facilities in Pisgah Forest, North Carolina, Neenah, Wisconsin, and Summerville, South Carolina. International operations include facilities in Germany, France, the Philippines, Australia and Canada.





Logo.gif (6042 bytes)  1999 The P.H. Glatfelter Company