American Recycler News, Inc.


WM restructures, cutting 700 employee positions

Waste Management, Inc. (WM) unveiled a plan to reorganize its operations, designed to flatten the management structure and remove approximately 100 basis points of costs.

The reorganization is designed to sharpen the focus on the company’s three major initiatives: yield management, improving efficiency in operations and better meeting customers’ needs. The principal organizational changes that will take place are:

  • Removal of the management layer consisting of four geographic groups (Eastern, Midwest, Southern and Western);
  • Consolidation and reduction of the number of areas managing the core collection, disposal and recycling businesses from 22 to 17;
  • Reduction of corporate support staff in order to better align their support with the needs of the operating units, while reducing costs; and
  • Elimination of approximately 700 employee positions.

WM also announced new appointments of key officers:

  • James E. Trevathan, Jr., previously executive vice president – growth, innovation and field support, has been appointed executive vice president and chief operating officer.
  • Jeff M. Harris and John J. Morris have each been appointed to the role of senior vice president, field operations. Harris was most recently senior vice president – midwest group, and Morris was most recently chief strategy officer and prior to that he was area vice president for one of the company’s largest markets. In these roles, Harris and Morris will oversee the 17 operating areas.

A third quarter pre-tax charge to earnings in the range of $50 to $60 million is anticipated, primarily related to employee separation costs. This amount does not include potential additional charges for facility closures or consolidations.