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http://www.sportsonesource.com/news/spec/spec_article.asp?section=8&Prod=2&id=27621
Cut most of their pros earlier this winter and now a ton of employees. You know with so many people in this country loosing their jobs these days there is going to be even less people next year able to afford an $80 lift ticket and new gear. That's probably what they're preparing for so there's probably going to be even more team & employee cuts by other companies soon so they can survive the bad economy.
Fully understand what you are getting at. However, although a major component of business is "the winning attitude" another component is the micro and macro economic factors of the marginal purchaser. I'm sure you know, but the marginal purchaser is the purchaser that would leave the particular market first in the case of a price change upward or a budget constraint downward. In this case, there will be plenty of marginal purchasers with budget constraints shifting downward taking them out of the ski marketplace until that budget constraint moves back up again. So in this case, no matter how well a company attempts to convince the public of their awesomeness, there is an inevitable group of purchasers that will no longer be in the market for these particular skis and maybe for skis in general.
A large company such as Rossignol inevitably has extraneous job positions that were created under strong economic times that are less useful in poor economic times. I'm not saying that every single one of those lost jobs is extraneous, but without question, many of them were and the rest are a by product of thinning out the company based upon future projections that might make those positions extraneous. This is a gamble. You do run the risk of having better than expected sales and an over worked/under performing team, but the worste case scenario here is that you are thin enough to turn a high profit on margin and volume and can do some quick rehiring. Should your gamble prove correct...than your losses are hopefully better than another company's losses.
Also, keep in mind that Rossignol was originally purchased by Quick for a few years at an outrageously optimistic P/E and then sold back to the original owners for hundreds of millions less than the purchase. Essentially giving Bruno (I think that's his name) a 0 interest small percentage repayment loan. Back to the point, during the time of ownership by Quick (being the large corporation they are) there could easily have been thousands of new hires that weren't really pertinent.
So although news like this sounds aweful, and surely is for those who lost their job. It might be the neccessary decision that keeps the company afloat while we weather this storm. Also possible, too many cuts and the company gets run into the ground...
Sallanches based Dynastar is to receive a massive cash injection of € 38 million from its owners, Rossignol. A statement from the board of directors claims that Dynastar is losing over € 1 million a week. Despite a good ski season in Europe Rossignol group has been the victim of strategic decisions compounded by the credit crunch.
Figures from the SnowSports Industries America (SIA) say that sales of ski and snowboard equipment, clothing and accesories in February 2009 had declined 16% year on year in the US market. Commentators note that the industry has held up better than other sectors but that winter sports enthusiasts are no longer ready to pay high prices. Experts say that shops still need stock to sell in 2009-10, the problem now is how to finance inventory. Rossignol’s cash will help Dynastar pay suppliers and adapt production to the projected market. The group overproduced in 2008-9 and was left with around 250,000 unsold skis. A move that surprised industry watchers giving the looming worldwide financial problems.
ahh i understand more of what you're trying to say now. i think it's kind of a risk either way... lay off your workers and end up having an epic year in sales. or keep your employees but lose the company to total bankruptcy [which ultimately leads to unemployment for everyone in the company]. it's a tough decision either way and to be honest it could be their only way of staying afloat since it's doubtful the economy will be back to "normal" in six months. i'm not an economist either but that's just what i think
which is why they are cutting back, so they can try to prevent that.
sorry for the double post
gayy
i guess rossi is going to be an under ground business now
the funny thing is that money is something entirely created by man, and now people base their entire lives around getting money. Now, since the money created is only owned by the federal reserve and is lent to us, how could we ever pay that back? how can borrowing money at intrest create more of it to lend back to the people who made iit?
