Story Published: May 5, 2009 at 3:18 PM PDT
EUGENE, Ore. -- Datalogic plans to close a manufacturing plant in Eugene, eliminating 89 jobs.
The company will relocate the mobile products manufacturing operation to an existing plant in Europe, the company said in a press release.
“This restructuring and streamlining activity will protect the long-term viability of the business” said Bill Parnell, President and CEO, Datalogic Scanning, “and will better align the company to emerge even stronger as the global economy begins to improve.”
The following is a press release courtesy Datalogic
Datalogic announced today that it will relocate its Eugene based mobile products manufacturing plant to an existing location in Europe resulting in the closure of a Eugene manufacturing facility. The North American product development, marketing, service, warehousing, customer support, sales and field support functions of Datalogic Mobile will remain intact.
Datalogic Scanning’s manufacturing, product development, marketing, and all other customer support and administrative functions will remain intact in Eugene, Oregon. Some mobile products employees are being offered positions with the larger scanning products group located at 959 Terry Street.
Datalogic has two separate groups with significant operations located in Eugene, Oregon: Datalogic Mobile which is headquartered in Bologna, Italy and Datalogic Scanning, headquartered in Eugene, Oregon. Both of these entities had strong performance in 2008:
Datalogic Scanning revenue - $272.2M; EBITDA - $29.4M
Datalogic Mobile revenue - $128.5M; EBITDA - $10.1M
The global economic crisis and the current recessionary cycle are adversely impacting the Automatic Identification industry. On average, the industry has seen revenues drop by 25% to 30% from comparable periods a year ago. Datalogic is not immune to this economic downturn.
Datalogic analyzed the situation and as early as nine months ago began to take appropriate actions including a pay and hiring freeze, elimination of bonuses and other variable compensation for management, strict control of discretionary expenses, selective pay cuts and other aggressive measures to help counteract the impact on company performance.
It became clear that further action had to be taken at both divisions to address the situation. The two divisions have announced a combined reduction of 89 jobs currently based in Eugene, Oregon. This comes in addition to other positions already reduced in various international locations. The companies will offer severance and outplacement support to displaced employees who will also be eligible for continued medical, dental, and vision coverage as well as unemployment benefits.
“This restructuring and streamlining activity will protect the long-term viability of the business” said Bill Parnell, President and CEO, Datalogic Scanning, “and will better align the company to emerge even stronger as the global economy begins to improve.”
About Datalogic Scanning
Datalogic Scanning is the recognized #1 worldwide leader in high-performance fixed position retail point-of-sale scanners and the #1 provider of handheld scanners in EMEA (Europe, Middle East and Africa), with the most complete line of general purpose and ruggedized handheld scanners available today.
Headquartered in Eugene, Oregon, Datalogic Scanning, a division of the Datalogic Group, serves multiple industries throughout the retail supply chain and distribution channel as well as manufacturing, government, healthcare, banking and finance sectors with a presence in over 120 countries.