Brunswick Corp. said it would reduce operating costs of its marine business by an estimated $30 to $35 million by eliminating 300 corporate positions — some filled and others unfilled — across all the businesses.
The announcement comes after Brunswick said last month it was eliminating 100 salaried positions following the sale of its fitness business.
Today’s announcement, as well as the earlier streamlining of corporate staff functions announced in June, affects salaried positions only, Brunswick spokesman Lee Gordon confirmed to Trade Only Today.
Together, those two reductions account for about 9 percent of global salaried workforce, or about 400 positions.
“These actions will reduce cost in our marine operations and are consistent with the right-sizing of our corporate functional support organization announced last month,” said Brunswick CEO David Foulkes in a statement. “Together, these enterprise-wide programs will result in a reduction of approximately $50 million in annual run-rate costs, due in large part to a nine percent reduction in our global salaried workforce.”
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,” said Foulkes.
The reductions will occur at Mercury Marine, as well as at boat group locations all over, said Gordon.
Brunswick operates 14 boat brands globally, including Sea Ray, Boston Whaler, Bayliner, Lowe, Harris, Lund, Crestliner and Cypress Cay.
Today’s announcement includes the planned establishment of a leaner operating structure within Brunswick’s boat businesses, which the company says will allow it to more easily leverage synergies in “certain areas of the business.”
This structure will also facilitate further initiatives to reduce both indirect and direct costs and take better advantage of Brunswick’s scale in market-facing organizations, the company said.
All of that will allow for “continued investment in new products and business initiatives to drive future growth,” the company said.
Similarly, Mercury Marine, Brunswick’s engine division, has taken actions across its global propulsion and P&A businesses to streamline operations while continuing to invest in additional capacity for high horsepower engines, new product development and advanced technologies.
Most actions announced today have already been implemented. There will be a partial-year impact in 2019, and almost all the $50 million of cost reductions will have a full-year impact in 2020.
Brunswick stated it expects to record restructuring charges of $7 million associated with these actions.
“Actions like these affecting our colleagues and co-workers are never easy but are necessary for us to continue to invest in the future of our business,” said Foulkes. “We thank the departing staff members for their service to Brunswick. We deeply appreciate the commitment and contribution of all of our employees.”