Apogee Enterprises Inc. announced that it will eliminate certain products and service offerings, terminate jobs and simplify its brand portfolio. Officials say these actions, which it called Project Fortify, are intended to streamline business operations to position the company for profitable growth. According to Apogee, it will make the following changes to its Architectural Framing Systems (AFS) sector, including:

  • Eliminating certain lower-margin product and service offerings, enabling the consolidation of AFS into a single operating entity;
  • Transferring production operations from its facility in Walker, Michigan, to its facilities in Monett, Missouri, and Wausau, Wisconsin. Jeff Huebschen, vice president of investor relations and communications, says Apogee plans to maintain an office in the Walker area for non-production employees; and
  • Simplifying the sector’s brand portfolio and commercial model to improve flexibility.

Officials add that Apogee will also change its Architectural Services and Corporate sectors. All of these actions are already in effect and will be completed in the third quarter of fiscal 2025.

“The actions we are announcing today progress our enterprise strategy and help position Apogee to build on what we’ve achieved over the past two years,” says CEO Ty R. Silberhorn. “Project Fortify will further improve our cost structure, enhance organizational efficiency and enable our team to focus on higher growth, higher margin opportunities.”

Officials explain that Apogee expects to incur approximately $16 million to $18 million of pre-tax charges for the changes. This includes $7 million to $9 million of severance and employee-related costs, $2 million to $3 million contract termination costs, and $6 million to $7 million of other expenses.

The moves are expected to lead to annualized cost savings of $12 million to $14 million and reduce Apogee’s workforce by approximately 250 employees. It expects approximately 60% of the savings to be realized in fiscal 2025 and the remainder in fiscal 2026. It also expects that approximately 70% of the savings will be realized in the AFS segment, 20% in the Architectural Services segment, and 10% in the Corporate segment.

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