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.”