Blog Post
Avcorp Announces Restructuring at its Gardena Facility
- By Avcorp Industries
- •
- 07 Nov, 2016
Move designed to optimize work flows and generate significant annual cost savings
November 7, 2016
VANCOUVER: Avcorp Industries Inc. (TSX: AVP) (the “Company”, “Avcorp” or the “Avcorp Group”) has announced that it has issued 60 day WARN notifications on October 24, 2016, as part of a restructuring initiative at its Gardena California facility that will result in a workforce reduction of 75 permanent employees by December 31, 2016. This reduction is in addition to exiting 180 temporary workers during the last 90 days, which were added this year to support customers’ requirements arising from legacy product issues.
The restructuring will result in significant annual cost savings for the Company, net of anticipated severance costs of approximately $260,000.
“The team in Gardena has done a great job of meeting our customers’ needs under challenging conditions,” said Mr. Peter George, CEO of the Avcorp Group. “Our customers and our people understand the issues we face, and we are continuing to identify and act on opportunities in a focused and measured way. While these decisions were not taken lightly, they are intended to protect our people and capabilities, stabilize our processes and optimize our work flows so that we deliver world-class performance to our customers.”
VANCOUVER: Avcorp Industries Inc. (TSX: AVP) (the “Company”, “Avcorp” or the “Avcorp Group”) has announced that it has issued 60 day WARN notifications on October 24, 2016, as part of a restructuring initiative at its Gardena California facility that will result in a workforce reduction of 75 permanent employees by December 31, 2016. This reduction is in addition to exiting 180 temporary workers during the last 90 days, which were added this year to support customers’ requirements arising from legacy product issues.
The restructuring will result in significant annual cost savings for the Company, net of anticipated severance costs of approximately $260,000.
“The team in Gardena has done a great job of meeting our customers’ needs under challenging conditions,” said Mr. Peter George, CEO of the Avcorp Group. “Our customers and our people understand the issues we face, and we are continuing to identify and act on opportunities in a focused and measured way. While these decisions were not taken lightly, they are intended to protect our people and capabilities, stabilize our processes and optimize our work flows so that we deliver world-class performance to our customers.”
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