Two major printing giants in the United States announced layoffs and factory closures respectively, and it is estimated that 250 people will lose their jobs!
author: Annie
2025-08-08
LSC Communications: Continued spin-offs and layoffs, including logistics
LSC Communications, headquartered in Warrenville, Illinois, is undergoing the latest chapter in its spinoff history. The company filed a Worker Adjustment and Retraining Notification Act (WARNA) notice with the state of Illinois on July 9, announcing that it would permanently lay off 180 employees at its LSC Communications Transport LLC facility in Bolingbrook, Illinois (operating as Enru Logistics) on September 5, in what it described as a "mass layoff."
This downsizing of the logistics business is not an isolated incident. Previously, LSC Communications has made several major moves in business restructuring:
Sale of United Mail Business: In April of this year, LSC Communications sold the United Mail portion of its LSC-MCL United Mail and United Mail Logistics businesses to Quad Corporation of Sussex, Wisconsin. The transaction included all manufacturing assets, technology, and commercial operations related to MCL United Mail. However, the sale did not include the logistics portion of the business, which is currently facing layoffs.
Divesting of Magazine and Catalog Businesses Last Year: Earlier, in February 2024, CJK Group, headquartered in Brainerd, Minnesota, acquired the assets of LSC Communications' magazine and catalog business units, as well as the stock of Kodi Collective LLC (formerly Continuum Marketing Services LLC). The acquired assets and stock collectively constituted "Kodi Collective." At the time of the sale, Kodi Collective comprised five offset printing plants, three digital printing plants, and a marketing fulfillment services company, demonstrating LSC Communications' commitment to divesting non-core assets.
LSC Communications itself has a tumultuous history of integrations and spin-offs. It was originally spun off from Chicago-based printing giant R.R. Donnelley in 2016, when R.R. Donnelley split into three independent, publicly traded companies.
However, LSC Communications' planned merger with another industry giant, Quad, was blocked by the U.S. Department of Justice in 2019 for antitrust reasons, ultimately leading to LSC Communications filing for bankruptcy protection. Subsequently, LSC Communications' assets were acquired by private equity firm Atlas Holdings in 2020.
Interestingly, less than two years later, Atlas Holdings engaged in a fierce bidding war with Chatham Asset Management, another private equity firm, for control of RR Donnelley, but ultimately lost. This series of capital operations and business adjustments profoundly reflects the ongoing turmoil in the printing industry amid intensifying competition and market changes.
OneTouchPoint: Closing Denver Factory, Refocusing Business, and Joining Forces with Mittera
In addition to LSC Communications' move, Hartland, Wisconsin-based OneTouchPoint (OTP) also announced a major adjustment: it will close its Denver printing plant on September 12, a move that will affect 70 workers.
It's worth noting that the closure of OTP's Denver plant isn't simply a market exit; rather, it's part of a strategic realignment. The Denver plant's local trading accounts have been divested to Mittera, headquartered in Des Moines, Iowa. As part of this divestiture, OTP's Denver plant's production equipment will be relocated to other OTP printing facilities in Hartland and New Berlin, Wisconsin, and Tempe, Arizona, to optimize production layout and resource utilization.
OTP CEO David Holland explained: "Our decision to integrate the local transaction accounts of our Denver plant with Mittera reflects our proactive approach to adapting to the changing market environment." He further pointed out: "By shifting the focus to technology investment and centers of excellence, OTP can continue to meet the evolving and complex needs of corporate customers in digital, print and omnichannel communication platforms." This shows that OTP is shifting its business focus to higher-end, more technologically advanced and comprehensive solution-capable enterprise-level services.
Mittera played a key role in the transaction. Mittera CEO Jon Thrun added in the same announcement, "We are honored to assume these client relationships as OTP sharpens its focus on enterprise clients. Our team is built for moments like this—we have deep print experience, strong technology integration capabilities, and a hands-on approach to customer success. We view this not only as a transformation, but also as the beginning of a strong partnership with our clients and OTP to support their strategic direction." Mittera plans to absorb key OTP employees to ensure a smooth transition and seamless customer service.
OTP provides brand management, commercial printing, and fulfillment services to over 3,000 brands, including Fortune 500 companies in the manufacturing, healthcare, health insurance, financial services, alcohol and beverage, franchise, and retail sectors. This transaction for OTP marks Mittera's 25th acquisition, a testament to its strategy of rapid expansion through mergers and acquisitions as a national provider of integrated and data-driven printing, mail, and marketing services to a wide range of industries.
The profound changes and future trends of the American printing industry
The ongoing spinoff and layoffs at LSC Communications, along with OneTouchPoint's plant closures and divestitures, highlight the profound structural changes currently underway in the US printing industry. This isn't simply a simple business adjustment; it represents an inevitable path for the industry to survive and thrive under multiple pressures.
From these events, we can observe the following notable trends:
Capacity optimization and streamlining: Whether it is LSC Communications divesting non-core manufacturing and logistics businesses, or OTP closing and relocating equipment from its Denver plant, it shows that printing companies are actively optimizing their capacity layout and closing inefficient or non-strategic plants to reduce operating costs and improve overall efficiency.
Business Model Transformation: OTP has explicitly stated its focus on "technology investment and centers of excellence" to meet the complex digital, print, and omnichannel communication needs of its corporate clients. This reflects the transformation of traditional printing companies from simple print service providers to comprehensive marketing and communications solutions providers, embracing digital and multimedia convergence.
Consolidation and M&A remain active: Mittera, a supplier that has expanded through 25 acquisitions, exemplifies industry consolidation through its aggressive M&A strategy. Amidst fierce market competition and squeezed profit margins, large companies are using M&A to achieve economies of scale, expand service offerings, and acquire customer resources, a key industry trend.
Specialization and Differentiation: OTP's divestiture of local trading accounts to Mittera, while focusing more on enterprise clients, demonstrates its pursuit of specialization and differentiation within market segments. By focusing on high-value clients or specific areas, the company can provide more specialized services, thereby enhancing competitive barriers and profitability.
Impact on the job market: Massive layoffs and factory closures have directly impacted hundreds of employees. This reminds us that during industry transformation and consolidation, job market pain is inevitable. Relevant companies and governments need to pay attention and develop measures to help affected employees find reemployment.
In short, the US printing industry is undergoing a period of dynamic adjustment. Traditional printing demand is being impacted by digitalization, leaving companies facing the multiple pressures of rising costs and declining profits. Against this backdrop, industry consolidation, transformation, and innovation are becoming the dominant themes. In the future, only those companies that embrace technological change, optimize operational models, offer diversified services, and actively pursue strategic mergers and acquisitions will be able to remain victorious in the fierce market competition and open up new growth opportunities. Players that fail to adapt to these changes risk being eliminated, leading to further industry concentration.
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