Quiksilver announced today that it will be eliminating 200 positions at the company. According to company spokesperson Joshua Katz, 150 employees will be losing their jobs. The other 50 positions were approved and budgeted for, but not yet filled.
Approximately twenty-percent of the jobs eliminated will be at the management level or higher.
Here's the press release:
Quiksilver, Inc. Takes Steps to Reduce Costs in Americas Region
Company to Eliminate 200 Positions
Spending Cuts in the Americas to Total Approximately $40 Million
Huntington Beach, California, January 26, 2009–Quiksilver, Inc. (NYSE: ZQK) today announced
that it is taking additional steps to reduce expenses in its Americas region as part of an overall
restructuring effort to reposition its business and in response to the continued decline in the
consumer retail environment. The cost saving measures are expected to reduce expenses in the
Americas region by more than 10%, or approximately $40 million annually, and will impact nearly
all functional areas. The company will eliminate 200 positions as part of the plan, including a
reduction-in-force of approximately 150 employees which is expected to account for roughly onethird
of the annual cost reductions. Quiksilver expects to record a charge of approximately $5
million in its first fiscal quarter as a result of these actions.
These cost reduction measures are in addition to expense reductions made by the company in
2008 and other actions already taken in the company's European and Asia Pacific regional
Robert B. McKnight, Jr., Chairman of the Board, President and Chief Executive Officer of
Quiksilver, Inc., commented, "Beginning last year, we initiated a process to reduce our corporate
overhead and cut spending in each of our regions. While these measures improved our overall
cost structure by more than $35 million, our commitment to further streamlining the business and
the continued decline in the retail environment make additional steps necessary. Our spending
cuts are across-the-board, touching each of our internal organizations and systems in the
Americas, but have been designed to drive improved efficiency while minimizing the impact to our
customers and other business partners. All levels of our organization are affected by these
actions as nearly 20 percent of the employees involved in the reduction hold manager-level titles
or higher. Our management team has worked together on these cost reduction measures with
the primary goal of becoming better positioned to weather the current environment and to meet
our business objectives moving forward."
As a part of its reduction in payroll, Quiksilver provided news of further pay cuts for members of
its executive management team in an SEC filing last week.
The company also reaffirmed that its efforts to restructure its uncommitted debt in Asia Pacific
and Europe remain on track for completion in February.