Memo

To: All Employees
From: Oliver Castle, President
Subject: Reorganization of the Company

As you well know, our company has had considerable difficulty this year with the collapse of the barunium market, with inflation hitting 12% and going up, with the labor difficulties we've had at several plants, and with the development of our new products, especially in the home products system.  This situation has forced the management to assess our entire company and its operations with a view to finding a better way to organize it for improved profits and long-term efficiency.

Some of our departments have been growing and shrinking without much rhyme or reason, and before this occasion we had not made the effort to take a really hard look at what we were doing.  Instead, we were patching things here and there with the aim of eliminating duplication when we could and pulling together groups that belong together functionally.

Now we are announcing a major reorganization to take effect on January 18.  We will announce the details on January 12, such as when the desks will be moved and when new managers will hold meetings with various employees to whom the information is pertinent.  We will also, at that time distribute a complete schedule setting forth who will be working for whom.  In the meantime, we are announcing the following changes so the managers in charge of the affected divisions and departments can prepare for the reorganization.

Charles Jones will assume duties as Director of the new Office Products Division, leaving his present post of Manager of Typewriter and Office Equipment Supplies.  Janice Moreland will move from Vice President for Research to Vice President for Operations.  Jack Spotter will be the new head of the Research Department, moving from his position as Assistant Vice President for Operations.  Maxwell Richardson is leaving his post as Assistant to the President to fill the position of Assistant Vice President of Operations.  Marilyn Belt will become Director of the new Home Products Division, which used to have only project status.  These changes in department managerial positions will take place on January 5.  Current Assistant Directors will remain in their positions at that time unless otherwise notified.

Then, on January 12, changes at the level of Assistant Directors will go into effect.  Jed Franklin and Marsha Zettoneli, will become Assistant Director of Office Products and Assistant Director of Home Products, respectively, from their current positions as Assistant Director of Finance and Director of Budgeting.  The staffs of these departments will be informed by special memorandum from their managers about whether they will be moving with their current managers or staying in their current departments.  In most cases there will be no change, as we are trying to keep as many departments intact, with experienced staff, as possible.

Memo

To: All Employees
From: Oliver Castle, President
Subject: REORGANIZATION OF THE COMPANY

---

Background

As you well know, our company has had considerable difficulty this year with the collapse of the barunium market inflation hitting 12% and going up labor difficulties at several plants, and development of our new products, especially in the home products systems. This situation has forced the management to assess our entire company and its operations with a view to finding a better way to organize it for improved profits and long-term efficiency.

---

Management changes

The following table includes recent management changes. Name Will move from... To... Charles Jones Manager, Office Equipment Supplies Director, Office Products Division Janice Moreland V.P., Research V.P., Operations Jack Spotter Assistant V.P., Operations Director, Research Maxwell Richardson Assistant to the President Assistant V.P., Operations Marilyn Belt Assistant to the Plant Manager Director, Home Products Division Jed Franklin Assistant Director, Finance Assistant Director, Office Products Marsha Zettonelli Director of Budgeting Assistant Director, Home Products

---

Memorandum to staff	The managers of these departments will inform the staff by special memo whether they will be moving with their current managers or staying in their current departments.  In most cases there will be no change, as we are trying to keep as many departments intact as possible.

---

Effective dates	The effective dates for these changes are as follows. January 5 —Changes in Corporate Officers and Division Chiefs. January 12 —Announcement of details of reorganization, Assistant Directors move to new jobs. January 18 —Reorganization takes effect.

---