NEWBURY PARK, Calif. (BRAIN) — Giant USA is laying off ten employees and consolidating some departments at its headquarters as it adjusts to soft market conditions. General manager JT Thompson told employees and outside sales reps about the layoffs in a company-wide meeting Friday.
The layoffs include inside and outside sales staff; staffing at the company's three U.S. distribution centers also was affected.
"These are steps we must take in order to create sustainable growth for our business and our retail partners," Thompson said in a statement distributed to employees Friday. He said the departing employees are being offered severance packages and third party outplacement assistance.
Thompson also announced a new organizational plan. It includes a consolidation of financial and IT functions into one department; inside sales and quality assurance are also being combined, as are retail services and marketing functions.
"As Giant becomes more focused, our organization has had to right size our resources to market conditions while enabling us to better serve our retailers and riders. I know I can count on everyone to help us move forward," Thompson said.
Following the layoffs, Giant USA has 118 employees. The company's last significant layoffs were in 2010, when it let five employees go.
Giant USA's Taiwan-based parent, Giant Manufacturing, anticipated a tough year in its first quarter results announced in May. The company said it expected "flattish sales" internationally this year, with the U.S. market affected by excess bike inventory held by the company's major competitors. Several U.S. brands announced deep sales very early this season; at the time, Thompson said Giant's inventory was under control but Giant had to offer similar discounts to stay competitive.
The Giant layoffs come the same week as Hawley-Lambert announced it would let go 13 employees, due to the soft market and the further consolidation of its U.S. and Canadian functions. SRAM and Specialized also have announced layoffs this year, and Accell North America had a number of layoffs late last year as it consolidated some of its operations and then sold off its SBS business.
