Facing Sales Slump, Tenn. Papermaker Suspends 401(k) Match

May 8, 2009 (PLANSPONSOR.com) - A Memphis-based paper products manufacturer has joined the ranks of employers suspending their 401(k) match as part of a cost-cutting campaign.

A Memphis Business Journal news report said Verso Paper Company  is trying to cut $65 million in costs in light of a a 37% decrease in net sales for the first quarter of 2009 compared to the year-ago quarter.

The company’s sales decrease is directly related to historically low shipments for coated papers, which are typically used for print ads, the Business Journal reported, with reduced ad spending being seen across the economy.

“How a company positions itself for the future is critical,” said Mike Jackson, president and CEO of Verso, n a conference call, according to the news account. “Since Verso became a company, we have recognized that trading short-term gain versus long-term success is not the way we wanted to run the business.”