Specialized confirms job losses in the wake of coronavirus
Rumours of job losses at Specialized have been circulating in recent weeks and on Thursday the California-based company confirmed that it has indeed laid off some staff.
In a letter sent to Specialized dealers on Thursday, company president and CEO Mike Sinyard said the coronavirus pandemic had forced Specialized to re-examine its priorities and “refocus our investments”.
“This requires bringing in new talent with skill sets that we currently do not have and regrettably, parting ways with some really good people whose roles are no longer essential for creating the future,” Sinyard wrote.
“There is no escaping the reality that these changes will be disruptive for a while. As an organization, we will have to come together and support one another. We’ll have to be more flexible in the work we do and challenge the way we have always done things. And as we invest in new talent, we will also have to take additional steps to cut expenses through tighter cost management.”
Sinyard himself is forfeiting 100% of his base salary, while other members of management are taking up to a 30% pay reduction.
While Sinyard’s letter doesn’t specify the number of jobs that have been lost, Bicycle Retailer (BRAIN) reports that 46 employees have been laid off — 7% of Specialized’s workforce. Sinyard told BRAIN that the majority of those let go were from Specialized’s European subsidiaries, with customer service, purchasing, logistics, marketing and product management the areas most affected.
Sinyard reportedly told BRAIN that all those made redundant received a “generous” severance and will retain their health benefits.