Malibu Boats denies imminent layoffs

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Malibu Boats is disputing recent media reports it intends to lay off workers at its Merced, Calif., facility.

To comply with state and federal law, Malibu recently sent a Worker Adjustment and Retraining Notification Act (WARN) letter to government agencies warning of potential layoffs. This action prompted a local media report that layoffs were imminent, with that article subsequently picked up by other media outlets, the company said.

"This notice was not to inform employees they are being laid off. The letter was to inform them of the possibility," the company said in a statement. "Malibu Boats will strive to avoid layoffs, but if some cuts become necessary for the health of the company, they will be temporary.

"The letter went to everyone at Malibu California, including the CEO," the statement continues. "This does not mean these warnings have or even will be enacted. This means Malibu has given the required notice of the possibility of layoffs."

Malibu, in the statement, said it is the only watersports boat manufacturer to not cease production during these economic times.

"Malibu Boats continues to fill boat orders at their California and Tennessee plants in contrast to many other watersports manufacturers who have halted their production completely," the company said.