Under the Efficiencies initiative the firm expects to save $12 billion in costs beginning in the second half of 2008.
The firm also reported that its Operations and Supply Chain initiative is underway, following assessment and recommendations
from an external supply chain consultancy. Under the plan the firm hopes to save between $15 million and $30 million per year.
It says it is in the process of evaluating bids for the sale of its stationery and activities business and believes its new product assortment is stronger than the 2007 collection.
Marc Bertrand, president and CEO, said: "The actions we are taking are designed to restore sales growth, profitability and financial flexibility. Our absolute priority is to restore the value of the company."