Aug 06, 2009. /Lesprom Network/. AbitibiBowater believes it can save $100 million (US) a year by cutting its head office staff by 25%, ForestTalk reported. Right now, AbitibiBowater has about 700 employees including 400 in Montreal. 175 of the 700 employees will laid off by September 1st. The cutting doesn't stop there. As part of a comprehensive restructuring plan, Dave Paterson, CEO, told AbitibiBowater's employees today that over the following months, the company will: -suspend its 2009 incentive compensation programs, including special equity awards; -reduce warehousing and inventory levels; l-imit the use of in-house contractors; -suspend its membership in many associations; -reduce business travel expenses; -review corporate lease arrangements. These cuts were announced in addition to the indefinite shutdown of two paper machines in Thunder Bay. AbitibiBowater is seeking an agreement from the union to reduce labour costs and wants the provincial government to reduce energy and fibre costs to enable one of the paper machines to be reactivated. Due to AbitibiBowater's creditor protection, typical severance payments will not be made to the workers who have their position eliminated.