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More layoffs at Remington’s New York plant

Friday, March 17, 2017 11:34
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Remington Arms laid off 34 more employees this week, saying the decision was made to adjust to changing markets.

“These changes, while difficult, are necessary to ensure the company’s long-term success in a rapidly changing marketplace,” said Jessica Kallam, a Remington spokeswoman, in a statement emailed to Guns.com.

Kallam added the 34 people effected by the decision will be assisted through severance packages and other benefits to help with their transition.

The news comes a little more than a week after the gun maker cut 122 jobs from its historic New York facility, citing a slowdown in orders and high inventory levels. Remington has been manufacturing firearms in the Ilion location since 1816.

The industry is experiencing a glut in the supply chain, according to statements by executives from other gun companies. Before the November elections, gun makers prepared for Democrats to maintain political power in the White House, but, like many, were surprised by the victory of Donald Trump.

With pro-gun Republicans in control of both chambers of Congress and the White House, efforts to advance gun control legislation have been severely weakened and gun sales saw a rapid decline.

Still, some local lawmakers blamed the initial layoffs this month on strict gun laws forced through the state house by the state governor and other lawmakers in 2013.

“This is upsetting. It’s very troubling that 122 of our neighbors have lost their jobs due to poor economic policies pushed by Gov. Cuomo and Assembly Majority as well as the SAFE Act,” said Assemblyman Brian Miller, R-New Hartford, in a statement. “Make no mistake, there is a direct correlation.”

“I cannot help but think that the anti-Second Amendment, anti-sportsmen and anti-business culture perpetuated by New York City progressives in state policy is making the atmosphere very difficult for this historic company,” said Assemblyman Marc W. Butler, R-Newport, in a statement. “This company is a very important source of jobs for our district, and is a part of our regional identity.”

Gun sales followed seasonal trends after the new year, but at a lower volume, according to data reviewed by Guns.com. Gun sales fell 18 percent after the new year, with January showing a 23.8 percent decline and February showing a 12 percent decline.

Competitors of the iconic gun maker are experiencing similar issues, but haven’t had mass layoffs. Remington is part of the much later Remington Outdoor Company, which has been relocating manufacturing efforts for most of the more than a dozen gun and gun-related companies to Alabama since 2014.

Shortly after the move, Remington cut more than 200 jobs from the Ilion location. By centralizing production efforts, the company aimed to cut several operating costs, but has yet to show big results.

In November, Remington reported positive results with a 14 percent increase in sales and $9.5 million in profit. Yet, the company had to dig itself out of the negatives to show those gains. For the prior fiscal year, the gun maker reported a $135.2 million loss due to relocation efforts.

Then in November 2015, Moody’s Investors Service downgraded ROC for weak performance and forecasted that the conglomerate wouldn’t be able to make meaningful improvements in the next one to two years — which would be this coming November. The main concern was that Remington’s revenue stream was much too low. For FY2015, the company reported $815 million and will owe a similar amount to creditors by May 2020.

The post More layoffs at Remington’s New York plant appeared first on Guns.com.



Source: http://www.guns.com/2017/03/17/remington-lays-off-more-workers/

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