Brunswick Corp. has laid off 100 employees as part of the restructuring of its corporate support functions, now that the fitness division is no longer in its portfolio. The company completed the sale of its Fitness business to KPS Capital Partners, making it a marine-only company.
Brunswick said in a statement that the layoffs, reduced corporate expenses and other actions would result in $17 million in cost reductions on a full-year basis. The company said it “initiated a range of measures to streamline its cost structure to support sustained earnings growth and provide continued headroom to fund important product, digital, and growth-oriented business initiatives.”
The 100 positions were general and administrative positions. Brunswick also consolidated two Chicago offices.
“Throughout the Fitness sale process, we have been thoughtfully planning and preparing for our future as a more focused marine enterprise,” said Brunswick CEO David M. Foulkes in the statement. “We believe these measures are necessary to appropriately structure our organization going forward and invest in initiatives to drive growth as we reinforce our commitment to deliver industry-leading technology, service and quality to our customers.”
Brunswick said it will outline an “additional and more comprehensive set of initiatives” during its second-quarter earnings call on July 25, 2019.
“These decisions, many of which will directly affect our colleagues and co-workers, are not taken lightly and we deeply appreciate the commitment and contributions of our employees,” said Foulkes.
Brunswick expects to record restructuring charges of approximately $6 million in 2019. About one half will be recorded in the second quarter.
The company laid off more than 800 workers last year after it shut down its Sea Ray Yachts and Sport Yachts division.