Palatine-based Weber cutting jobs in wake of 21% sales dip, $52 million net loss
Palatine-based grill maker Weber Inc. plans to cut its workforce in the wake of a new quarterly earnings report showing its net sales dropped 21% from with the same period last year, the company announced this week.
For the fiscal third quarter ending June 30, Weber generated net sales of $528 million -- down from $669 million in the third quarter of 2021 -- and a net loss of $52 million, according to the report. Gross profits were down 49%, due to substantial freight and commodity cost increases compared to last year, the report states.
"Our third quarter performance reflects the margin pressures we are experiencing as a result of global headwinds in our current operating environment," interim CEO Alan Matula said in a statement. "To strengthen our financial position for fiscal year 2023 and beyond, we are introducing a comprehensive cash flow and cost management plan, which will position Weber to enhance its leadership position in a dynamic outdoor cooking market."
The report does not specify how many positions will be cut as part of the cost management plan, but states it will remove "management layers in the organization." Other components of the plan, according to the report, include a suspension of the quarterly cash dividend, a focused reduction of operating expenses and reducing global inventory, according to the report.
"Management believes these actions will result in at least $110 million of cash benefit, net of restructuring costs, in fiscal year 2023, with run-rate benefits beyond that," the report states.