Acuity To Axe 15% of Workforce
Acuity Brands is cutting 1,100 jobs which comes out to about 15% of its salaried work force by the end of February.
Shares of the company went down 11.1%.
According to a Forbes article,
“The company said second-quarter price increases have not been able to keep up with weak home improvement sales, high raw material costs and expenses related to inventory reduction. As a result, Acuity said it expects to break even or post a slight loss, excluding restructuring charges, in the second quarter ending Feb. 28.
Acuity said the job cuts will further reduce its second-quarter results by 25 cents per share and noted the accelerated process may result in additional facility consolidation charges. The company previously forecast results would be about flat in the first half of the fiscal year, compared to last year, and said first-quarter results were in line with that projection.”
“By accelerating our restructuring, Acuity Brands expects to significantly improve operating efficiencies, resulting in enhanced customer service, greater productivity, and higher returns for our shareholders,” said chairman and CEO Vernon J. Nagel.
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