Boston-Organic fertilizer producer Converted Organics Inc. is eliminating 24 corporate and manufacturing positions – or about half of the workforces at its Boston headquarters and New Jersey manufacturing facility – in a series of cost reduction measures that also include the reorganization of corporate and other functions at those two locations. The reductions are expected to reduce operating expenses by approximately $2.1 million per year. At the same time, discussions are being held with creditors to restructure principal and interest payments related to the Woodbridge, N.J., facility. Company officials said the reorganization will not impact their manufacturing facility at Gonzales, Calif., where a line of organic liquid fertilizer products accounted for approximately 75 percent of total sales through the first six months of 2010. The sales from California have grown 62 percent over 2009, and the company expects to see continued growth in the future. “This reorganization is designed to significantly reduce expenses while improving overall operational efficiency,” declared Converted Organics President Edward Gildea. “We believe that these measures make Converted Organics a leaner, more focused organization as we prepare for the next phase of the company’s growth. We have an aggressive growth strategy, which includes the development of a vertically-integrated portfolio of green assets, centered around our organic fertilizer products and the pending acquisition of TerraSphere Systems, LLC.”
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