Pelco management has announced that as the result of slower than expected sales recovery from early 2009 declines, increased efficiency in manufacturing, and in anticipation of weak industry growth for 2010, the company has decided to reduce the size of its workforce.
“Layoffs are and have always been a last option for Pelco”, said Dean Meyer, Pelco president and CEO. “This is a very unfortunate situation, but we must realign the size of operations to better match current economic conditions and to adjust for manufacturing improvements implemented over the last 12 months. This has been a very difficult conclusion for us to reach.”
Officials added that even though an aggressive, company-wide approach to cost management was implemented throughout 2009 — including work furloughs, salary freezes, out-sourcing of non-core business functions — the continued economic downturn and the shift of business toward emerging economies has created an environment that cannot sustain the company’s current US-based operations. According to officials, about 100 employees are expected to be released. The reduced work force will not have any impact on the company’s ability to serve and support customers.
Wolfgang Engling, Pelco’s area manager for southern Africa notes that the lay-offs are US-based. There will be no impact on the company’s South African operations.
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