Mercury Marine cut 50 salaried positions this week in response to a reduced demand for product, resulting from a struggling U.S. economy and a distressed boat and engine market.
This number represents about 3 percent of the estimated 1,750 salaried workers who are employed in Fond du Lac, Wis., Tulsa and Stillwater, Okla. and St. Cloud, Fla.
"In today's market, especially in light of continuing weak economic conditions, it is important that Mercury Marine remain agile and focused on changing market dynamics and emerging opportunities," Mercury spokesman Steve Fleming said today in a telephone interview.
"The economic difficulties mentioned make it necessary to significantly cut costs in many ways and, today, that meant terminating approximately 50 salaried employees," he added.
Fleming said most of the cutbacks are from the company's global headquarters in Fond du Lac, Wis. The layoffs also included about a half dozen each at the company's Tulsa and Stillwater, Okla., plants, and a couple in Florida.
He said Mercury looked hard at other options to avoid eliminating jobs, but he said with market conditions the way they are, it got to a point where layoffs became necessary.
"Mercury and its parent company, Brunswick Corporation, make such changes only after much deliberation determines them to be absolutely necessary and will continue to monitor market conditions and to consider best operating methods in an evolving marine industry," he said.
Fleming said there are no plans for additional layoffs, but "that's not possible to predict." If market conditions worsen, future cutbacks may become necessary, he said.
He emphasized, however, that the company will "also keep an eye on other ways to more effectively address the situation."