VALCOURT, QUEBEC, Canada – In response to the hit taken by the powersports industry due to global economic recession, BRP is taking “conservative actions,” including reducing overall production volumes in the coming year by 20 percent, cutting expenses; and implementing major changes to the organization, it reported in a statement earlier this week.
As a result, some 550 white-collar jobs will be eliminated, 80 percent of which will take place this month with another 20 percent over the next nine months. BRP already laid-off some 370 bluecollar employees in its third quarter ended Oct. 31, and another 430 blue-collar employees have received temporary lay-off notices in the fourth quarter. This workforce reduction involves all BRP divisions, the company reported.
"These are very difficult decisions to make but we must take appropriate preventive measures considering the seriousness of the situation," said Jose Boisjoli, president and chief executive officer. "We believe these measures will reduce our costs and make BRP less vulnerable to drastic declines in revenues caused by events outside our control, such as the current crisis," he added.
Part of the change involves the creation of two new divisions responsible for product development and manufacturing. BRP said it will achieve this by:
"We are confident these initiatives will help us come out of the recession a stronger company because this new structure provides us with the tools to focus on cost reductions, market strategies, product launches, product innovation and to maximize synergies in both the Vehicle Development and Manufacturing division and the Powertrain division," concluded Boisjoli.
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