Arctic Cat eliminates 65 positions

[grantnelson00]

Arctic Cat announced a workforce reduction Thursday. Approximately 65 positions are being eliminated, effective immediately, primarily in Thief River Falls. A press release from the company doesn?t indicate which types of positions are being eliminated. Arctic Cat announced a workforce reduction Thursday. Approximately 65 positions are being eliminated, effective immediately, primarily in Thief River Falls. A press release from the company doesn?t indicate which types of positions are being eliminated.
As of press time Friday, Tim Delmore, Arctic Cat?s chief financial officer, hadn?t returned phone calls from the Northern Watch seeking information pertaining to the eliminated positions and whether the reduction is related to its new plant in St. Cloud.
The reduction is being made in order to lower the company?s cost structure and align resources with current business conditions, according to the press release.
?This was not an easy decision, but it reflects the realities of the current industrywide market conditions, particularly for sales of snow-related products,? said Chris Twomey, chairman and chief executive officer. ?We are right-sizing the business to lower our cost structure, strengthen our profitability and increase our long-term competitiveness. We continue to be excited about the snowmobile market and plan to keep investing in this profitable business at levels that allow us to develop innovative new products and improve distribution but also more realistically reflect the current size of the market.?
The eliminated positions represent less than 4 percent of Arctic Cat?s 1,800 employees. The company doesn?t expect any material financial impact related to this announcement in its fiscal fourth quarter ending March 31.