Garmin Ltd. today said it is laying off 141 employees in Kansas City, a first for the Olathe-based navigation business that has been one of the area's fastest growing companies.
All of the affected employees are in Olathe, or in the company's two area customer service centers. Garmin has 2,510 employees in the Kansas City area and about 9,500 worldwide.
The cuts represent 5.6 percent of Garmin's local workforce.
Garmin told employees this morning the layoff is necessary because the company's record growth has been stalled by the economy.
"Garmin experienced explosive demand for its products over the past few years, and we aggressively hired associates to meet those high-growth business objectives," said Cliff Pemble, Garmin's president. "With the new economic realities facing our industry and the global economy, we are now faced with excess capacity in some areas of the company.”
Employees are being laid off from Garmin's human resources, marketing administration and operations divisions. Marketing administration includes product support employees. Operations includes warehouse, manufacturing and customer repair employees.
All employees will receive severance packages, the company said.
Garmin did not disclose how much it hopes to save with the layoffs, or the cost of the severance program.
“Making these difficult decisions now will help us align our structure more closely with the current demand for our products. The areas affected by these cuts correlated most closely with the excess capacity we faced as a result of the downturn in the global economy,” Pemble said.
Garmin eliminated some contract labor positions in its Taiwan manufacturing facilities late last year.
The cuts announced today are the first of full-time Garmin employees.
“While these cuts are painful to make, we still feel strongly that Garmin has the associates necessary to continue our innovation, support our business, and serve our customer base.”
Garmin, formed 20 years ago, has grown dramatically in the last five years.
In 2004, Garmin sold 2.3 million products and had sales of $762.5 million.
Last year, Garmin sold 16.9 million products and reported sales of almost $3.5 billion.
However, Garmin missed Wall Street sales estimates for the first time in 2008, and said the uncertain economy meant sales in 2009 would be slower.













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