Quiksilver Americas eliminated 44 positions today in the company’s ongoing bid to improve efficiencies and increase profitability, a company spokesman said.
The layoffs occurred across a number of functions and levels of the company, and all brands were impacted.
Quiksilver has talked for some time about its quest to further globalize its business operations and improve its bottom line.
The move today is the latest in an ongoing streamlining effort as the company begins to make more global product, leverage its marketing spend globally, and implement technology systems, all of which have created redundancies, Vice President of Investor Relations Bruce Thomas.
Americas President Rob Colby told me via email that it was a difficult day. The positions eliminated were principally supply chain positions, he said.
“…As we globalize our product engines (taking out redundant development), we are being reorganized in each of our three regions,” he said.
I asked if the economic climate was also a contributing factor.
“The business in the Americas is really strong and growing — sell through is very solid for all three brands,” Rob said.
“But as a company, we generate a significant amount of our profit in Europe. As you know, Europe is tough right now. We’re fortunate to be doing much better than some of our competitors in Europe, but it still requires us to really scrutinize expenses.
“And in general, globally we are spending more than our peers in SG&A, so that’s certainly a focus of ours — reducing expenses so we can get really healthy.”
Rob pointed out that Quiksilver, however, is still hiring, and on a net basis will continue to add jobs in the Americas.
Quiksilver is one of several industry companies that are cutting expenses, including Billabong, which has said that it is reducing overhead around the world, and Volcom, which recently went through a round of layoffs.
