LSC Communications commercial printer, which lost $ 24 million in Q2 2019 due to an “unprecedented decline” in the number of catalogs and magazines it printed, has $ 35 million in sales and the closure of its longstanding South facility Bay in October announced the loss of 228 jobs.
The company, a former subsidiary of Chicago-based RR Donnelley, whose sales declined 10.2 percent last quarter, filed a required notice with the state Department of Employment Development on Aug. 7.
“Changing market conditions” necessitated the closure of the Los Angeles Magazine printing facility, which is located on 5 acres on Pacific Gateway Drive in Harbor Gateway, Rebecca Robertson, vice president of human resources, said in a statement to the state. The purchaser of the plant was not disclosed.
Company officials declined to comment.
However, Robertson told the state that “job segregation” would begin October 9 and end November 30. The laid-offs include printing press operators, forklift drivers, and shipping and reception staff.
The announcement came on the same day that the company announced its dismal results for the second quarter.
According to the company’s website, LSC Communications was spun off from its parent company in 2016. Since then, the share price has reportedly fallen 97 percent.
Workers who spoke to a reporter last week but refused to give their names said an unspecified number of employees who are ready to move are being offered jobs at other of the company’s printing facilities, including Las Vegas . A large Torrance press is also being moved to the Las Vegas facility, a staff member said.
The Internet has transformed the business model for the traditional print-based media industry with massive layoffs and publication closures, and these issues affect the commercial printing industry as well.
For example, the former weekly US News & World Report is now primarily a web-based publication to save printing and distribution costs.
“It’s not cyclical,” CEO Tom Quinlan told analysts on a conference call of the developing industry. “It’s structural.
“A lot of publications are going digital,” he added. “Catalogs are thinner. They are still catalogs, but much thinner. “
The company’s financial health was compounded by the fact that LSC Communications and Quad Graphics, the company’s main competitor in the industry, planned to close a $ 1.4 billion deal.
This planned merger was blocked by the Ministry of Justice in June for anti-trust reasons.
The DOJ said the merger between “only two major providers of magazine catalog and book printing services … would have hurt competition”.