Fender lets go 300 employees

mlp187

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View attachment 112135

It's insane that this sticker (or one like it) is literally on every door of every building in California....kinda defeats the purpose. It is particularly frustrating when people come into your building and ask what harmful chemicals are in the building....and the best you can do is shrug and tell them if they're concerned the best thing they can do is hurry up and do what they came to do and then retreat somewhere safe
Dude these come in all the GC and MF mailers too. Fucking nuts.
 

KentBrockman

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when I lived in the UK, it was the Daily Mail that tried to tell you that everything and anything caused cancer
 

sirbuh

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That's the thing (or at least a theory). They probably hired more people to keep up with the demand and now that the demand has gone back to the level it was before the pandemic they're letting people go.
this is my understanding of the situation they got a little too bullish on their covid numbers and market has started to correct
 

wheresthefbomb

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:agreed:

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grrr_me_scary

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I wonder if the plan is to eventually move regular USA production out of California.

Keep the various Custom Shops, and maybe a small amount of higher tier lines in Corona, but move the mid-range production to another, cheaper to operate and staff, facility.

That solves two problems they've had brewing for a while: space constraints within the Corona complex and rising cost of doing business in Cali.

Just thinking out loud. I know the whole "moving out of Cali" rumor has been around since about forever, maybe it'll actually come true.
The possible "future" move out of California (and acquire new staff later) is what came to mind when I saw this post.

Also, I have been noticing more and more gear that sold quickly over the last few years (new and used) are sitting unsold now and used gear that was sitting for a lengthy time seems to only get sold if the price drops a lot.
 

eaeolian

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The last few sentences sound like they're implementing a large automation push. It's the only thing that remotely makes sense as they're having trouble meeting demand.
Especially with them introducing the new "American" Jackson line, supposedly built in Corona.
 

Emperor Guillotine

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Let's not forget just how costly it is for Fender (well...for anyone...) to simply exist in Southern California nowadays. (Riverside County for the factory, and Los Angeles county for the company headquarters.)

The automation push is a very good guess. However, I wonder if Fender is preparing for something else such as the supposed impending recession in the USA, which means less spending from consumers, thus sales will plummet (although I'm unsure how well Fender has actually been doing in terms of growth and sales in recent years anyway) and the guitar market will dip drastically. All of it points to another reason to lay-off so many workers including slashing management.
 
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