According to a report in the Augusta (Ga.) Chronicle, Textron Specialized Vehicles will be laying off about 400 employees, or about 10 percent of its workforce, “because of ‘significant changes’ it has undergone since acquiring Arctic Cat in 2017.”
According to a Form 8-K filed Dec. 4 with the Securities and Exchange Commission in Washington, D.C., Textron Inc.’s Board of Directors on Dec. 4 approved a plan to restructure the Textron Specialized Vehicles businesses within its Industrial segment.
The filing goes on to report that “Textron Specialized Vehicles has undergone significant changes since the acquisition of Arctic Cat as we have expanded the product portfolio and integrated manufacturing operations and retail distribution. As disclosed in our Form 10-Q filed for the third quarter of 2018, the operating results for these businesses were significantly below our expectations as dealer sell-through lagged despite the introduction of new products into our dealer network. Management conducted a strategic review of the Textron Specialized Vehicles businesses, which included an assessment of the acquired dealer network and go-to-market strategy for the Textron Off Road and Arctic Cat brands, as well as cost reduction initiatives throughout the Textron Specialized Vehicles businesses. The restructuring plan will result in the impairment of intangible assets, primarily related to product rationalization, the elimination of approximately 400 positions, representing approximately 10% of Textron Specialized Vehicles’ workforce, and closure of several factory-direct turf-care branch locations and a manufacturing facility. The restructuring actions under this plan are expected to result in improved operating results for these businesses.”
The plan is to be “substantially completed by the end of 2018.”