PHOENIX, Jan. 15, 2016 /PRNewswire/ -- Republic Services,
Inc. (NYSE: RSG), a national leader in the recycling and waste
services industry, announced today changes to its organizational
structure and customer engagement model that are designed to better
serve its 14 million customers. Today's announcement is a natural
extension of the many customer-focused programs and initiatives
recently launched by the Company. These programs differentiate its
service offering, build customer loyalty and increase the quality
of revenue for the products and services it offers.
"The organizational improvements we announced today further
strengthen our customer focus by investing in resources closer to
the customer. This streamlined structure will allow our local teams
to be more nimble and effective in serving our customers and
differentiating our product offering across the country," said
Donald W. Slager, president and
chief executive officer.
Background to the Improvements:
Republic has realigned its field support functions by combining two
organizational layers into one. This includes the elimination of
its three Regions, the consolidation of its 20 Areas into 10 and
the streamlining of select roles at its Phoenix Headquarters.
Republic will reinvest and deploy resources into its Area levels
through the creation of 10 Area Offices equipped with an enhanced
team of operators and functional support roles. These Area teams
will be the resource epicenter for the Company's 165 Business Units
that serve its customers across 240 markets each day.
As part of the improvements, Republic will be consolidating its
call center operations. Over the next two years, the Company will
consolidate over 100 customer service locations into three Customer
Resource Centers. The new state-of-the-art facilities and the
technology deployed will provide its customer service employees
with the tools and capabilities they need to provide better service
to customers across a myriad of touch points, including voice,
email, text, social channels, and live chat.
Investing for Growth:
Republic plans to invest approximately $20
million in 2016 to design and implement its Customer
Resource Centers and other customer-focused initiatives, and
expects these initiatives to contribute approximately $10 million of annual cost savings beginning in
2018. Additionally, the Company anticipates annual cost
savings of approximately $25 million
from the organizational realignment. The costs to implement
the initiatives and savings from the realignment were included in
the Company's 2016 preliminary outlook announced on October 29. Republic expects to incur
restructuring charges of approximately $35
million, or 6 cents of EPS,
during 2016. The restructuring charges will be excluded from the
Company's Adjusted EPS and Adjusted Free Cash Flow.
Slager added, "The approach we are taking to execute our Company
strategy of profitable growth through differentiation centers
around consistently delivering the highest level of customer
service – one that offers a differentiated experience of easy
solutions, reliability and environmental responsibility while
successfully balancing our commitment to creating long-term
shareholder value. The initiatives and realignment of our
organization will improve our performance in meeting these
objectives."
About Republic Services
Republic Services, Inc. is an
industry leader in U.S. recycling and non-hazardous solid
waste. Through its subsidiaries, Republic's collection
companies, recycling centers, transfer stations and landfills focus
on providing effective solutions to make proper waste disposal
effortless for their commercial, industrial, municipal, residential
and oilfield customers. We'll handle it from
here.™, the brand's tagline, lets customers know
they can count on Republic to provide a superior experience while
fostering a sustainable Blue Planet™ for future
generations to enjoy a cleaner, safer and healthier world.
For more information, visit the Republic Services website at
republicservices.com. "Like" Republic on Facebook at
www.facebook.com/republicservices and follow on Twitter
@RepublicService.
The Company participates in investor presentations and
conferences throughout the year. Interested parties can find a
schedule of these conferences at republicservices.com.
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SOURCE Republic Services, Inc.