Quiksilver Eliminates 200 Jobs, Board Member Resigns
Quiksilver, the embattled Huntington Beach, Calif.–based surf giant, announced cost-cutting measures that will eliminate 200 jobs within its Americas region. The cuts, which a statement from the company said are part of an overall restructuring effort to reposition its business, are expected to reduce expenses in the Americas region by approximately $40 million, or 10 percent, annually.
The job cuts are spread across all levels of the Americas region and will affect 100 employees at Quiksilver’s headquarters. Another 50 jobs will be eliminated from the company’s distribution center in Mira Loma, Calif. The remaining 50 jobs represent unfilled positions that were included in the company’s budget. According to reports, 20 percent of the jobs eliminated from Quiksilver’s headquarters represent individuals in managerial or executive positions.
Bob McKnight—Quiksilver’s chairman of the board, president and chief executive officer—said that while cuts made since last year reduced the company’s corporate overhead and spending by $35 million, the continued decline of the retail environment made further steps necessary.
“Our spending cuts are across-the-board, touching each of our internal organizations and systems in the Americas but have been designed to drive improved efficiency while minimizing the impact to our customers and other business partners,” McKnight said in a statement. “Our management team has worked together on these cost-reduction measures with the primary goal of becoming better positioned to weather the current environment and to meet our business objectives moving forward.”
The news comes on the heels of the resignation of Timothy Harmon as a member of Quiksilver’s board. No reason was given for his departure. Prior to his service at Quiksilver, Harmon held the posts of president and chief merchandising officer of Pacific Sunwear of California.
In addition, Bill Bussiere, who recently resigned his post as chief financial officer of Quiksilver Americas, has taken a top job at Irvine, Calif.–based La Jolla Group. Bussiere was named president and chief financial officer of La Jolla, reporting to Toby Bost, the company’s chief executive. La Jolla holds the licenses to produce apparel for the O’Neill, Rusty, Metal Mulisha and Lost Clothing brands.
Quiksilver has recently seen an exodus of executives. In the last month, Marty Samuels, president of Quiksilver Americas, and Carol Christopherson, president of Roxy, have left the company.
The executives still at Quiksilver are not immune to the company’s belt-tightening. A Jan. 20 filing with the Securities and Exchange Commission said company executives had agreed to a 5 percent reduction in their annual base salaries as part of Quiksilver’s efforts to reduce its payroll. The move affects McKnight; Charles Exon, chief administrative officer and general counsel; and Pierre Agnes, president of Quiksilver Europe.
One bright spot for Quiksilver came as its stock jumped 46 percent to $2.21 per share Jan. 26 on the hot-and-heavy speculation that it is on the brink of selling its performing DC shoe brand to VF Corp. or on the cusp of being taken over by Nike Inc. Both rumors have gone unsubstantiated thus far. —Erin Barajas
