CDS Global announced the closing of a mail processing operation in Red Oak as part of a restructuring of their organization and this will result affect 200 jobs. The company will close its Red Oak mail processing operation, affecting just under 200 full-time, part-time and temporary employees from 30th June’ 2010 and shall be moved to Harlan and Boone. The company will be offering severance and outplacement services to the affected employees.
“Over the past two years CDS Global has been transforming its business due to the digital revolution,” said Malcolm Netburn, chairman and CEO. “These steps are a reflection of that transformation. Our employees’ commitment to excellence has shaped this company’s success and will continue to be the foundation for future growth. This was a difficult decision due to the loss of valued CDS Global employees.”
"We have become the largest, really, outsource provider to the magazine industry and the world, all pretty much out of Iowa roots," said Netburn.
"Maybe you're reading (a magazine) at the airport and something drops on your lap, that little annoying card," he said. "If you look at that card, most of those cards for any magazine you get will probably say Harlan, Iowa, or Red Oak, Iowa, or Boone, Iowa."
"It's going to be a difficult thing for this town and for neighboring towns as well," said Pam Dunbar of Red Oak.
"You can do all types of business on the computer and it really is a more efficient way to do it and it is more immediate," said Drake journalism professor Lori Blachford.
"The people who lost their jobs did not lose them because they weren't great employees," Netburn said. "They lost them because the nature of the businesses we're serving are changing