Sonoco will simplify its business structure and provide the necessary scale in its Consumer and Industrial packaging and services businesses to drive profitable growth and obtain sustainable operating efficiencies, according to Harris E. DeLoach Jr., chairman, president and CEO.

In a statement, DeLoach said the global recession has structurally changed many of its markets. “As a result, we must change our organization to address these new market realities and react to the changing needs of our customers. In addition, we will shift resources to our businesses with the best opportunity for global development so that we can meet our longer term growth and shareholder return goals.”

The changes will in some cases involve adding resources, including people and capital but there will be some redundancies. “Over all, we estimate that these actions will reduce costs by an additional $20 million annually,” DeLoach said. Redundant employees are being offered severance pay, benefit continuation and outplacement assistance.

Sonoco will consolidate 19 separate businesses into six Consumer and Industrial business units with a direct reporting line to the company’s senior leadership. It will also consolidate nine Consumer Packaging and Services businesses into four global business units, headed by Charles Sullivan, executive vice-president, Consumer.

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