They are not actually cutting their back office costs, are they?...

They are not actually cutting their back office costs, are they? As Mr Carr states:

- The three merchandising brands will continue to exist
- Invoices will still be sent from the three individual trading legal companies
- No short term plans to create a single legal structure
- Continuing to trade Howard Smith, Robert Horne and Paper Co as legal entities
- Paperlinx will continue to offer three lines of credit.

This is a purley cosmetic change. Costs will not go down and it is likley that it will cause revenues to fall faster than they are already falling, as customers like to trade with known brands and will be confused by the change, the merging of sales teams is never without fallout as sales people are distracted by internal disputes about clients, territories and remuneration, and clients will also be affected by a move to a single credit system.

So maybe it is a necessary step, but one which in the short to medium term will produce lower revenues and no cost saving.