Company cites reduced consumer demand
Arctic Cat Inc. has announced a workforce reduction in order to align the company’s cost structure with current industry-wide market conditions.
“Aligning the size of our workforce with sales volumes is a difficult step that we must take during this economic downturn,” says Christopher A. Twomey, chairman and chief executive officer. “We are rescaling the business to lower production capacity and operating costs, bringing them in line with reduced consumer demand. We regret having to take this action and want to thank affected employees for their dedicated efforts.”
Approximately 100 positions are being eliminated, effective immediately, primarily in Thief River Falls, Minn. This represents 7% of Arctic Cat’s 1,400 employees. Eligible employees will be offered severance packages. The company does not expect any material financial impact related to this announcement.