Lake Forest, Ill. – Boat, bowling and fitness gear maker Brunswick Corp. said Thursday it was laying off nearly 650 workers, or about 2 percent of its workforce, and shutting two plants as part of a cost-cutting plan that executives hoped would save $26 million next year.
Executives also announced a plan to consolidate boat manufacturing facilities, sales offices and distribution warehouses.
“Given current market conditions, we have planned for flat to declining production volumes in 2007,” Brunswick chairman and chief executive Dustan McCoy said. “With that assumption, we must take appropriate actions to cut costs and capitalize on the productivity improvements we are realizing.”
The company plans to close one of its two plants in Cumberland, Md., moving production of its Bayliner boats to a facility in Pipestone, Minn. A factory in Steinbach, Manitoba, will shut down after the company moves manufacturing of Lund boats to New York Mills, Minn.
Company spokesman Dan Kubera said a second Cumberland plant, as well as sales, operating and customer-service facilities in Steinbach, will remain open.
The layoffs are expected to reduce operating earnings by approximately $25 million to $28 million, mostly in the fourth quarter.
Last month, the company, which has a global workforce of 28,600, said its third-quarter profit fell 59 percent, caused by a drop in marine-related sales.
