To All:
"Irvine, Calif.-Based Oakley Lays Off 'Fewer Than' 200 Employees as Orders Drop"
By Kelly Barron, The Orange County Register, Calif.
Knight-Ridder/Tribune Business News
IRVINE, Calif.--Mar. 12--Trendy-sunglasses maker Oakley Inc. said Tuesday that it laid off "fewer than" 200 employees, signaling that the company is operating under increased pressure from Wall Street for higher profits.
The majority of the workers were full-time employees who worked in the company's manufacturing divisions. Some were temporary workers.
Link Newcomb, the company's chief operating officer, would not specify the number of layoffs.
Prior to the cuts, Oakley employed roughly 700 people.
The layoffs resulted from canceled orders from the company's biggest retailer, Sunglass Hut, and efficiencies created at its new factory in Foothill Ranch.
Sunglass Hut canceled orders from the company late last year, saying it already had more Oakley sunglasses than it could sell.
Oakley's profit fell by more than half in the fourth quarter to $3.6 million from a year ago. Sales fell 9 percent, to $39.3 million. Meanwhile, the company's stock has fallen by more than half, to $9.875 from its September high of $24.50.
Oakley officials have said they expect the cancelation of orders to hurt first- and second-quarter results as well.
The company is hoping its new X Metal sunglasses will boost performance. So far only 50 have been made and just 25 frames have been shipped in California. Officials say more will be made in coming weeks.
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(c) 1997, The Orange County (Calif.) Register. Distributed by Knight-Ridder/Tribune Business News.
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03:16 03-12-97 |
