The world of industry is never static, with companies continually needing to adapt and evolve to ensure their survival. Briggs & Stratton, a household name in the motor manufacturing industry, is no exception to this rule. This article will provide a comprehensive overview of Briggs And Stratton layoffs, the company’s history, why the layoffs happened, financial health, & more details.
Background Of Briggs And Stratton
Briggs & Stratton has a rich history dating back to 1908, when the company was established by Stephen F. Briggs and Harold M. Stratton. The duo aimed to revolutionize the motor industry, and for over a century, they’ve largely succeeded. The company has created a name for itself as a reputable and reliable motor manufacturer, but like any other business, they’ve faced their share of challenges.
Briggs And Stratton Layoffs Details
Briggs & Stratton has seen several layoffs over the years, with these decisions often being spurred by the need for change or adaptation. As of 2024, there have been no Briggs And Stratton Layoffs. However, the company did experience a significant layoff in early 2023, letting go of approximately 160 employees due to production changes.
This change followed the departure of their CEO, Joe Liotine, marking a period of significant transformation for the company. Prior layoffs occurred in January 2022, June 2020, and a particularly notable one in March 2015 in Georgia. These layoffs are typically triggered by the need for substantial changes within the company or shifts in the market for its products.
Reasons For Briggs And Stratton Layoffs
Understanding the reasons behind these layoffs is crucial to fully comprehend the company’s trajectory. The early 2023 layoffs were driven by a combination of factors. The North American tractor market had been on a decline for several years, impacting the company’s product demand.
Shifts in customer preferences also played a role, affecting the company’s product offerings. Economic factors and competition further compounded these challenges, leading to the company’s decision to discontinue certain product lines such as Simplicity and Snapper zero-turns. However, these brands continued to thrive in other markets.
Layoffs Effect On Workforce
In a move that one union representative likened to a punch in the gut, Briggs & Stratton laid off approximately 160 workers from its Burleigh Street plant. The affected workers, who made up almost half of the workforce, were informed 60 days prior to the layoffs. Despite the company’s efforts to assist displaced employees in finding new jobs, the layoffs have undeniably taken a toll on the local economy.
Briggs & Stratton cited cost-saving measures as the primary reason for the layoffs, with plans to move production to Alabama and Missouri. However, the company’s commitment to assisting laid-off workers and the ongoing negotiations by the workers’ union for fair severance packages are glimmers of hope in this dire situation.
Did Briggs & Stratton Pay Severance To The Laid-off Employees?
Yes, Briggs & Stratton has pledged to support the workers who were laid off. While the company hasn’t specified the contents of the severance packages, it typically includes financial assistance and job placement support. Additionally, the United Steelworkers union is advocating for the fair treatment of displaced workers, further strengthening the support system for these individuals.
Briggs And Stratton Financial Health
Briggs & Stratton’s financial troubles peaked in 2020 when the company filed for Chapter 11 bankruptcy. However, the subsequent purchase by KPS Capital Partners, which wiped clean over $900 million in debt, brought much-needed relief. The company further improved its financial health by selling off some assets and securing new loans to repay old ones.
With guidance from Ernst & Young LLP, Briggs & Stratton embarked on a journey to restructure and streamline its operations. Today, with the backing of KPS Capital Partners, the company is in a stable financial position, equipped to innovate and grow.
Briggs And Stratton Chapter 11 Bankruptcy
In the face of financial hardship exacerbated by the COVID-19 pandemic, Briggs & Stratton filed for Chapter 11 bankruptcy in July 2020. This move allowed the company to continue its operations while restructuring its finances. Simultaneously, a deal was struck with KPS Capital Partners, who agreed to buy most of the company’s assets and assume some of its debt.
A significant loan of $677.5 million provided the necessary financial support during this transitional period. KPS Capital Partners led the way as the initial bidder in a court-supervised sale process, setting a benchmark for other potential buyers. Crucially, the bankruptcy proceedings did not impact Briggs & Stratton’s international operations.
Conclusion
Briggs & Stratton, a well-known motor manufacturing company, has faced ups and downs throughout its long history. While layoffs have been a part of its story, none have occurred in 2024. These layoffs were mainly due to changes in what customers want and the company’s need to save money. Even though they’ve had to let some people go, Briggs & Stratton has promised to help them out. Financially, they’ve had tough times, like filing for bankruptcy in 2020, but they’ve bounced back with the help of KPS Capital Partners. Now, they’re in a better place and ready to grow.
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