Gates Corp. laid off about 40 people on Tuesday at its global headquarters in Denver.
“They were across the board, (primarily) those in corporate support functions,” said John Zimmerman, chief financial officer of Gates and its holding company, Tomkins PLC.
Zimmerman cites three elements contributing to the decision — the consolidation of its holding company, Tomkins PLC, the company’s shifting focus toward regionalization in Asia, Europe, and the Americas, and the overall economic environment.
“When you go from a $5 billion to $3 billion company there are going to be some personnel cuts,” Zimmerman said. “Just looking overall at the macroeconomic environment softening globally.”
Denver became the global headquarters of Tomkins in Sept. 2011 and will dispose of two subsidiary companies in the coming months.
“Effectively, you are just down to Gates after those deals close,” Zimmerman said.
Zimmerman believes that the company is well-positioned as a premium industrial company, which plans to re-brand in the near future.
“Gates is still very, very strong,” Zimmerman said. “And we are still very, very committed to Denver being our global headquarters.”
Following Tuesday’s layoffs, between its two locations, downtown in the Denver Tech Center.
Kristen Leigh Painter: 303-954-1638, kpainter@denverpost.com or twitter.com/kristenpainter
