Covid-19 Requires Layoffs, Reorganization for Deceuninck North America
April 15th, 2020 by EditorDeceuninck North America today announced that, due to the market conditions, the economic uncertainty, and its responsibility to protect its employees and customers in the face of challenges brought on by COVID-19, it is laying off 30% of the employees at its Monroe, Ohio, operations effective immediately. The facility in Fernley, Nev., will not be affected.
“Over the last few weeks, we have quickly entered a new reality, the duration of which is unclear,” said Filip Geeraert, president and CEO of Deceuninck North America. “The new and unprecedented demands that social distancing and other protective measures have placed on our operations and facility management, combined with a severe decline in order intake, led us to take these actions.”
Deceuninck’s actions are based on the reduction in sales versus the size of the organization and related cost structure. With more than 650 employees, it had built a team capable of handling more volume as it had planned for strong growth in 2020. The adjustments are being initiated to further protect employees, streamline operations, focus on strategic opportunities, and invest in the future.
Deceuninck is optimistic that the interim changes will safeguard its business so it can continue to serve customers throughout the crisis and into the future.
“As demand increases, we will again adjust our team and operations to handle the growth,” added Geeraert.
This sends a chill throughout the entire organization, no matter the reason, and my heart goes out to those affected in Monroe. I’m sure I’ve worked with some impacted by this decision. My prayers are with you all.
This leaves a lot of questions, though. What’s special about Nevada? Are the US markets that radically different that one location would have to sacrifice 30% of its workforce, while another carries on untouched? How are Deceuninck operations in other countries responding to their (presumed) reduced demand? What’s going on in Belgium, France, Germany, Italy, Turkey, China? From all news reports they’ve been hit as hard or harder than the US. Is this a Deceuninck worldwide response, and would it affect all their interests, say, for example, their bicycle team?