Specialized cuts workforce, announces restructuring

Renewed focus on innovation, marketing, and supply chain

Specialized has a history  of producing innovative and high quality components, this new realignment should help the brand continue to pursue those goals in the future.

Specialized has a history of producing innovative and high quality components, this new realignment should help the brand continue to pursue those goals in the future (click to enlarge).

According to a report on Bicycle Retailer and Industry News leading California-based bike, apparel and gear manufacturer Specialized has announced that it is reducing its global workforce by 3% in an effort to tighten and refocus the brand’s strategy. Less than 50 employees will be affected at the company’s Morgan Hill headquarters. All are reportedly being offered severance packages.

“We are tightening up our structure and focusing it on three key areas: innovation, marketing, and supply chain,” said Mike Sinyard, Specialized founder and CEO in a statement. “We are investing in new R&D space in Switzerland, Taiwan, and Morgan Hill that will keep us at the forefront of cycling innovation. We are focusing on marketing that will expand the global market for our brand and help our retailers drive traffic and sales. And finally, we are investing in our supply chain to ensure we are delivering the best product at the best price to riders and our retailers. All of this is an investment in our future.”

“We have made the difficult but necessary decision to reduce the number of employees and realign the organization. Our employees are, and have always been, what make this brand so special,” Sinyard added. “This decision, and the impact on our teammates, is of course very hard.”

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  • Duane says:

    Perhaps Stans No Tubes recent Patent lawsuit win set them back on attorneys fees.

  • Heffe says:

    This could be a response to Canyon’s forthcoming entry into the US market.

  • Ibissess says:

    Restructure. become leaner and meaner. That’s a great thing except for the employees who get pink slips.

    This shows a properly managed company that plans on staying around for the long term. Stay efficient, competitive and in the black. Sadly a few well known bike companies have vanished due to not managing this way GT, Schwinn… bloated, spewing money and inefficient. A lot like Government actually.

  • MTBRider says:

    Specialized is reducing there staff? They need more employees to get out of there huge hole there in with Stan’s. I lost whatever faith I had in Specialized.

  • Mark Stark says:

    Many times top dogs are given raises and bonus, after the “”hard decision for them”” to dump employees.Specialized is not some Chinese knock off company that can duplicate an others product and not expect to at least pay legal fees . I’m sure they pulled a Volkswagen and no one knows how the rims are a duplicate of Stan’s rims. They wanted Stan’s rims should of bought them probably benefited both companies .

  • mj says:

    Keep hatin on Spesh…I’ll keep buying them…and keep being on top of the podium on them.

  • B Q says:

    Pretty disappointing to see such a great brand get bashed just because they are so big. Why does nobody take the time to point out that they are one of the only brands out there still fighting to save jobs? They work harder to protect the old brick and mortar bike shops from going under by not letting their bikes to be sold online then any other company. The other thing is the sport is not growing folks. It is stagnant due to so many of us not introducing new people to the sport and the most important thing is we don’t do a good job of getting kids into it. Kids get pushed into team sports and stuck on cell phones and tablets and before you know it there is no time to go outside and enjoy the trails. I guarantee you that legal fees are not the reason for the job cuts. They need the capitol to due what we are not and find ways to grow the sport so there will still be a company that makes great affordable bikes to ride in 20 years.

  • ivy says:

    The Epic is an awesome bike, but it really bothers me as to how over the years they have done business with local shops of the area. Their latest installment is to reduce the profit the bike shop makes on their bikes (ie: increasing wholesale price, while limiting the retail price they can sell the bike for!)

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