Avery Dennison Corp. said it would eliminate about 10% of its workforce, or about 3,600 jobs, after reporting its first sales decline in 12 quarters.
The cuts will cost about $120 million, most of which will be booked in 2009, the Pasadena-based adhesive label maker said Tuesday. Avery said it would save $150 million annually over the next two years once the cuts were implemented.
Fourth-quarter net income dropped 46% from a year earlier to $42.6 million, or 43 cents a share, the company said. Revenue fell to $1.51 billion from $1.71 billion.
Avery Dennison shares fell $2.12, or 7.6%, to $25.72.