Federated to Consolidate Data Centers; Lorain, OH, Facility to Remain as Programming Center for Federated's Systems.CINCINNATI -- Federated Connected and treated as one. See federated database and federated directories. Department Stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. , Inc. (NYSE NYSE See: New York Stock Exchange :FD) (NYSE Arca For other uses of "ARCA", see ARCA. NYSE Arca, previously known as ArcaEx, an abbreviation of Archipelago Exchange, is an entirely online securities exchange on which both stocks and options are traded. :FD) today announced it will consolidate data center operations in St. Louis, MO, and Lorain, OH, as the company reduces duplication and excess capacity in its information technology organization. The St. Louis and Lorain data centers were acquired by Federated in its merger with The May Department Stores The May Department Stores Company was a department store chain founded in 1877 by David May in Leadville, Colorado. Its headquarters moved to St. Louis, Missouri in 1905, and the company went public in 1911. Company, which was completed in August 2005. A total of about 290 computer operations and systems development positions will be eliminated in the consolidation of these two facilities. A phase-out will begin in early January 2007 and will be completed by June 30, 2007. The St. Louis data center will be closed, affecting a systems development and computer operations staff of 195 employees. All non-management salaried systems development associates will be guaranteed a position at Federated Systems Group in Duluth, GA, if they elect to transfer. At Lorain, about 95 employees are affected as most computer operations and the help desk portions of the data center are closed. However, the systems development group (about 125 positions) will remain in Lorain, which will serve as a programming center for Federated's systems. In addition, a small staff of IT professionals will remain in Lorain to support computer operations and a business continuity site. All affected employees will be encouraged to apply for open positions in other Federated retail and support divisions. Those who work until a scheduled release date and then leave the company will be provided with severance and outplacement out·place·ment n. The process of facilitating a terminated employee's search for a new job by provision of professional services, such as counseling, paid for by the former employer. assistance. Data center consolidations are consistent with Federated's previously announced estimates to realize approximately $175 million in cost synergies in 2006 and at least $450 million in annual cost synergies in 2007 and beyond as a result of the May Company merger. Federated, with corporate offices in Cincinnati and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , is one of the nation's premier retailers, with fiscal 2006 sales expected to be more than $27 billion. Federated operates more than 850 department stores in 45 states, the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). , Guam and Puerto Rico under the names of Macy's and Bloomingdale's. The company also operates macys.com and Bloomingdale's By Mail. All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are based upon the current beliefs and expectations of Federated's management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, or the risk the company will not be able to divest the assets that it intends to divest or that the amounts realized in connection with the divestitures are less than anticipated, and other factors identified in documents filed by the company with the Securities and Exchange Commission. (NOTE: Additional information on Federated, including past news releases, is available at www.fds.com/pressroom.) |
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