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BRP tightening its belt with office layoffs after global production halt

All production suspended, temporary lay offs of most assembly line workers at 10 plants across the globe.

April 15, 2020   by Christopher Reynolds

RXT-x 300 Sea-Doo. PHOTO: BRP

VALCOURT, Que. — BRP Inc. is temporarily laying off office workers as part of cost reduction measures prompted by the COVID-19 pandemic.

The maker of Ski-Doo snowmobiles and Sea-Doo watercraft said “some employees” will be laid off or furloughed, while others will work reduced hours or fall subject to permanent layoffs.

The move comes amid a new hiring freeze and after the company suspended all production lines and temporarily laid off the majority of its assembly line workers at its 10 plants across the globe.

CEO Jose Boisjoli said the decision aims to protect employees – 13,500 were employed as of the end of January – and ensure the company’s long-term growth, stating that BRP entered the crisis “from a strong position.”

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BRP had $42.5 million in cash on hand as of Jan. 31 after earning $6.05 billion in revenue and $370.6 million in net income for the year.

The company declined to disclose the number of plant workers or office employees affected.

“These are cases directly linked to the suspension of our manufacturing activities,” spokeswoman Elaine Arsenault said in an email, referring to the office layoffs. “These measures will be gradually lifted as activities resume.”

Boisjoli is forgoing his salary for the quarter, while executives are taking a 15% cut and board members are dropping the cash portion of their compensation, the company said.

Remaining office employees face a 10 per cent salary reduction as the company cuts operating expenses and postpones capital expenditures.

The 10 factories affected in shutdowns announced on March 30 are located in Valcourt, Que., as well as the US, Mexico, Austria and Finland.

 


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General Manufacturing BRP COVID-19 layoffs Office production


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