Here's an article in the Merced Sun Times:
Malibu Boats files for mass layoffs
In two letters, boat manufacturer says as many as 153 may lose jobs in coming weeks.
By SCOTT JASON
sjason@mercedsun-star.com Malibu Boats sent a letter to its Merced employees Monday announcing that the company will probably be forced into mass layoffs at the end of May.
"We are sorry to have to take this action," company CEO Bob Alkema wrote to employees.
Letters were sent to all 200 or so employees at the Merced plant and company headquarters. Malibu officials said the worst-case scenario is that boat production would temporarily stop.
In a symbolic move, Alkema listed himself and other top managers among the people who could lose their jobs, though he said there are some positions that are safe.
He included himself to show that everyone's dealing with the recession. "If I give (a notice) to my guys, I give one to me too," he said. "We're in this together."
The boat company, like automakers and other manufacturers, is reeling from the effects of the credit crunch and lower consumer demand.
The 90,000-square-foot factory sent eight boats a day out the door in 2007. Now it's down to making one a day.
Dealers typically buy boats with bank loans and pay the debt off when it sells.
They're having a harder time buying as many boats to keep their floors stocked because banks are tightening the amount of credit available, marketing director Amy Mauzy said.
Alkema was among the company's founders and said he's never seen a market as troubled as this.
Mauzy said that it's been doing better than competitors because it began scaling back its production sooner. "We've been prepared," she said.
Nonetheless, Merced is faced with another major employer shedding some of its work force because of the recession.
Further, Arvin Sango, which manufactures Toyota parts, announced last week that 50 people accepted voluntary separation plans and another 29 were laid off companywide.
The cutback means that 15 people will be leaving the Merced plant, representing 22 percent of its work force.
Malibu was founded in 1982 in Merced and has remained based here. It has a plant in Tennessee and also an Australian headquarters.
There are no plans to move the company's headquarters from Merced, she said.
The Tennessee plant hasn't received any layoff notices because demand for boats has remained relatively high at four to five a day, Mauzy said.
Under the Worker Adjustment and Retraining Notification Act, major employers are required to alert government when they plan to dramatically reduce their work force.
They must also give a 60-day notice before layoffs become effective.
The two letters sent by Malibu's human resources director to the city mean that up to 153 workers could be let go, though Alkema said there are many jobs that are safe.
One letter sent March 23 said the company reasonably expects to lay off 83 workers in the manufacturing operation.
A second letter, dated March 30, listed an additional 70 workers that it expects to lay off. The job categories range from receptionist to chief executive officer.
In both memos, the company noted that it hopes business improves so that it may not be forced to let go as many workers.
It also wants to re-hire some of them when the economy begins to recover. The next 60 days will prove crucial to how deep the cuts will be, the CEO said.
In the meantime, Malibu plans to focus on building boats and pushing sales.
Reporter Scott Jason can be reached at (209) 385-2453 or
sjason@mercedsun-star.com.
http://www.mercedsunstar.com/167/story/769697.html
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