Brunswick reduces salaried workforce by 9% in restructuring
Boat and marine equipment manufacturer Brunswick Corp. announced Tuesday it has cut its global salaried workforce by a total of 9% as part of an overall company restructuring in the wake of the sale of its fitness equipment business this year.
About 300 positions from the company's global marine operations will be affected in the downsizing, Brunswick spokesman Daniel R. Kubera said Tuesday. This is in addition to about 100 corporate staff reductions announced in June after the sale of Brunswick's Life Fitness division, he added. Both actions are part of the 9% total.
The reductions will come from open roles that will not be filled as well as staff positions, Kubera said, and will not affect the suburban Chicago region. The reductions will leave the Mettawa-based company with approximately 13,000 employees globally.
The company is looking to reduce overall operating costs by as much as $35 million, according to a company statement. In addition to the job reductions, the company plans changes to the operating structure of its boat and marine equipment businesses, which it says will "allow for continued investment in new products and initiatives" to drive growth.
Brunswick CEO David M. Foulkes estimated the combined staff reductions and efficiencies will result in a savings of approximately $50 million in annual costs.
"These actions are designed to ensure that Brunswick is able to continue to aggressively invest in business transformation and growth initiatives across a broad range of potential economic and marine market scenarios," Foulkes said.
Much of the saving initiatives have already been implemented, Foulkes said, but most of the cost reductions will affect the company's 2020 operating year. Brunswick expects to record restructuring charges of $7 million as a result of the moves.
Brunswick sold Life Fitness to New York-based private equity firm KPS Capital Partners in May for about $490 million in cash.
The Rosemont-based company's brands include Cybex, Hammer Strength and Indoor Cycling Group. Brunswick said at the time the sale will allow it to focus on its core marine product line, from boat brands, such as Bayliner and Sea Ray, to boat engines, parts and technology.