Specialized Bicycle Components announced on Tuesday that it will lay off three percent of its global workforce, citing a need for a “smaller, more focused team.”
The company did not release the precise number of workers affected, and a total workforce figure was not immediately available. A company representative responded to a request for clarification by noting that less than 50 employees will be laid off.
“We are tightening up our structure and focusing it on three key areas: innovation, marketing, and supply chain,” said Mike Sinyard, Specialized founder and CEO. “We are investing in new R&D space in Switzerland, Taiwan, and Morgan Hill that will keep us at the forefront of cycling innovation. We are focusing on marketing that will expand the global market for our brand and help our retailers drive traffic and sales. And finally, we are investing in our supply chain to ensure we are delivering the best product at the best price to riders and our retailers. All of this is an investment in our future.”
The company is working closely with affected workers, according to a statement, and is offering both severance packages and other services to help former employees find work elsewhere.
“We have made the difficult but necessary decision to reduce the number of employees and realign the organization. Our employees are, and have always been, what make this brand so special,” Sinyard said. “This decision, and the impact on our teammates, is of course very hard.”