Solo Cup laying off 9 percent of workers

HIGHLAND PARK, Ill. - Packaging maker Solo Cup Co. said Friday it laid off about 9 percent of its work force because of the recession.

The company, which makes single-serve food and beverage containers, said that on Thursday it eliminated nearly 100 salaried positions and 25 contract employees. Before the layoffs, Solo Cup employed about 1,120 salaried workers, a spokeswoman said.

The majority of the affected employees were in Solo's Highland Park, Ill., and Owings Mills, Md., corporate offices.

The cuts in staff, including salaried employees and contractors, should result in about $11 million in annualized cost reductions, Solo Cup said.

The layoffs will result in a one-time severance charge of about $1 million. In addition, management expects to cancel a number of currently open positions.

No hourly manufacturing employees were laid off and there are not currently any plans to eliminate any hourly positions, a spokeswoman said.

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