In an attempt to improve operating margins after weak sales, Vancouver-based fitness company Nautilus Inc. announced plans Friday to cut its workforce by 140 people – including 80 in Vancouver.
The reduction is an effort to slash Nautilus’ expenses by $10 million annually. The layoffs equate to about 9 percent of the company’s workforce and 12 percent of its annual compensation.
The announcement comes after declining profits and the departure of Chief Executive Officer Gregg Hammann in August. Sales this year have been off by about 14 percent compared to last year, said Nautilus spokesman Ron Arp.
In Vancouver, the 80 layoffs were from a cross section of departments. No functions were shut down, but the call center, operations, finance, marketing, administration, information technology and facilities departments all were scaled down to fit the current sales rates, Arp said.
“We all realize business has been slow this year, but when you see the consequences, it’s tough,” he said. “We have to have the right size of staff for the kind of sales we can expect, but it’s never easy to watch your friends walk out the door.”
The other 60 positions were scattered globally, with concentrations in Tulsa, Okla., and Independence, Va.
The company is looking at restructuring initiatives, such as pursuing a secured line of credit. Arp said there is a strategic review of business underway, but said Nautilus is not in a position to release more details.
Severance and benefits packages based on years of service are being offered to affected staff.
