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Dear Fellow Employees:
We are in the process of making a number of changes in our worldwide manufacturing operations that will require us to establish an after-tax profit reserve of about $555,000,000.
As you can imagine, this decision to establish a restructuring reserve has been given thorough and deliberate consideration by the company’s management. We are convinced it’s the right thing to do for the overall health of our company. As a result of this reserve, we can become more cost competitive and continue to bring innovative products to our customers.
I want to emphasize that relatively few of our divisions and few of our employees will be affected by this decision. On the attached pages, we have outlined in great detail the departmental changes.
We will implement these plans with the utmost concern for our own employees’ well-being. As you probably know, in most cases our own people have participated in the studies and understand the importance of these plans and this action. At the few sites where our studies are still incomplete, we will continue to listen to our own staff and work closely with them, keeping you informed every step of the way.
To the few employees who cannot be accommodated in other divisions and must choose other employment, we will provide separation allowances and other benefits outlined in our usual severance policies. Finally, we pledge those leaving the company every reasonable assistance in finding suitable employment.
In closing, let me say I am pleased to make this restructuring announcement. We have a fine company—a company with people who have the highest values and interest for their colleagues. I’m confident you will come to share my enthusiasm for this decision.