For the second time this year, Quik-silver Inc. on Thursday cut about 10 percent of its staff as it seeks to lower costs and blunt the impact of the recession.
The Huntington Beach, Calif.-based board sport company, which operates its namesake brand along with skate label DC Shoes and junior line Roxy, said Thursday it laid off 125 people, and eliminated another 200 positions that were unfilled.
In January, Quiksilver reduced its payroll by 150 people, or about 10 percent of its then total staff, and also decided not to fill 200 open positions. The company in June announced the goal of trying to boost profits by $40 million to $60 million through cuts in expenses and improving profit margins.
Quiksilver didn’t disclose the names of senior executives who were affected by the latest job cuts. The layoffs affected staff at Quiksilver’s distribution center in Mira Loma, Calif., DC Shoes’ office in Vista, Calif., and the corporate headquarters where Quiksilver and Roxy are based.
A company spokesman said Quiksilver plans to change its structure, in which each brand operates separately with different people performing the same function at the various labels. Under the new format, a single person would handle the same function at multiple brands. The company has already installed Summer Rapp, who launched Quiksilver’s young contemporary line as vice president of design two years ago, as vice president of design for both Roxy and Quiksilver women’s.
Separately, the company said it remains on track to close 25 stores as part of a plan announced last December. It shuttered nine units in its fiscal year ended Oct. 31. The remaining 16 stores will close as soon as possible.
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