Avery Dennison Expands Job Cuts to as Many as 900

Avery Dennison Corp., the world’s biggest label maker, said Wednesday that it planned to cut 700 to 900 jobs, significantly more than the company predicted in October.

The company, which initially said the layoffs would cost $20 million to $30 million, now says the cuts will cost $50 million to $65 million. Most of those costs will be for severance pay and related termination expenses, company spokesman Charles Coleman said.

Avery Dennison said Oct. 25 that it expected to eliminate about 500 jobs, but Coleman said that was a preliminary estimate and that “after a thorough evaluation of our operations” the company decided to increase that number.

“We’d said more than 500 in October but we weren’t more specific,” he said.

The company announced the expanded layoffs in a Securities and Exchange Commission filing and said it expected the cutbacks to “impact most [of Avery’s] businesses and geographic regions.”

Avery Dennison employs about 21,400 men and women at more than 150 manufacturing and distribution facilities in 42 countries, including about 300 in Pasadena.

Founded as Avery Adhesives in 1935, the company manufactured the first self-adhesive labels from a rented loft space in Los Angeles.

The firm, which also makes other office products, has a research and development facility in Pasadena in addition to its corporate headquarters. Coleman said about 15 local employees had already been notified that they would lose their jobs. Avery Dennison earned $86.2 million on revenue of $1.36 billion in the quarter ended Oct. 1.

The job reductions will begin before the end of the year and be completed by mid-2006. Cuts will occur across the board, Coleman said, affecting management as well as production employees.

The company announced the reductions after the close of regular trading. Avery Dennison’s shares fell 96 cents to $57.25.