MEDINA, Minn. - An unseasonably warm winter and weakening oil markets factor into a poor fourth quarter by Minnesota-based Polaris industries, and the numbers are triggering layoffs and job-reductions company wide.
A company spokesperson confirmed for KARE 11 that 100 salaried positions were eliminated Monday, 50 of them coming from the company's Twin Cities operations. Additional open positions will not be filled, and the company will curtail hiring of temp and contract workers.
"Over the last several months, we have taken actions to reduce overall employment costs by approximately 7 percent to right-size our costs with our growth projections," said Kelly Basgen, Polaris Director of Strategic Communications. "Much of this has taken place as a result of thoughtful attrition, reduced use of contractors and temp agency workers, and closing of open and planned/budgeted positions. In addition, yesterday, we eliminated approximately 100 salaried positions worldwide that were staffed with Polaris employees, approximately 50 of which were based in the Twin Cities."
The announcement of job reductions comes as Polaris announces that net income for the fourth quarter of 2015 was $110.7 million, down 18 percent from the last quarter of 2014. Sales totaled $1,105.6 million, down 13 percent from the final quarter of 2014.
"The strengthening dollar and weakening oil markets combined with an unseasonably warm winter constrained demand for off-road vehicles and snowmobiles, placing pressure on dealer inventory and forcing us to curtail shipments in the fourth quarter.," said Polaris’ Chairman and Chief Executive Officer Scott Wine. "While our execution to plan did not meet our historically high standards, we have taken numerous actions to position Polaris for better performance in 2016.”