Deluxe Check printers, one of the nations largest check printers, and owners of Etc/SCAN, the nation's largest Verification company (Negative Check Data Base for hire), has announced plans for a business reorganization and change of business direction. "I sense for the first time in several years there's going to be some real restructuring that's going to happen quickly. I perceive Deluxe is going to be transformed over time into an organization that will participate in the evolution of paper-free or electronic checks and other kinds of electronic transaction services," said Joel Krasner, a New York analyst with Suncoast Capital. "A lot of the businesses they've acquired overspent and didn't have a focused strategy," Krasner said. "They've pulled in the reins."
The Minnesota-based printer of checks and business forms provided few new details in an electronic conference in early January with securities analysts on plans to save between $100 million and $125 million a year in operating costs. One conference participant said the company appears to be setting the stage for an aggressive restructuring that could trim a significant number of jobs. The company employs 17,000 workers, 3,000 of them in Minnesota. "It suggests there's going to be a number of employees who are going to be let go," said Joel Krasner.
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