SRAM Restructures Due To Soft Sales
CHICAGO, USA – Yesterday SRAM announced a restructuring resulting in the layoffs of approximately 40 employees across global operating functions. According to SRAM President Stan Day soft sales over the past year forced the restructuring which includes the focus on new business areas.
In a statement SRAM says, “The objective is to reshape the organization for a future that is more aligned with the competitive dynamics of the industry.”
The 40 employees that SRAM laid off per April 26 were working across the companies European, US and Asian operations. Stan Day said, “No one ever wants to be in position to request that people leave an organization, but sometimes it has to happen. I am confident that this restructuring positions us where we need to be and puts us on a firm foundation to drive forward into an evolving bike market.”
OEM volume down
On the soft sales of the past year the SRAM President said that it amounted to about 10% in the first quarter of 2016. And that its been cumulative over the past twelve months. He pointed out that despite strong growth in OEM specs the OEM volume was down.
For MY 2018 Stan Day expects further OEM spec growth as it offers eTap and the 1×12 Eagle MTB drivetrain as well as a strong line-up of suspension and wheel products. The current restructuring will not affect production and deliveries including the company’s newest components.
Strong Taiwan ties
Currently SRAM employs about 3,500 people worldwide. In 2014 SRAM’s Asia Development Center was opened in Taichung Taiwan. With it the US based components maker expressed the strong ties it has with the Taiwan bike industry. SRAM’s Taiwan operations counts currently 3 factories with close to 2,000 employees.