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STURTEVANT, WI – BRP US Inc. plans to layoff 387 people at its Sturtevant facility, which produced the Evinrude E-TEC and E-Tec G2 outbound engines.
The company cited business challenges over the last few years. But “the unprecedented effects of the COVID-19 pandemic on the economy” accelerated the decision to cease production of the outboard engines, according to documents filed with the State of Wisconsin.
“This reorganization was a difficult decision, and to the extent, additional notice was required, BRP intends to provide the employees who are being terminated without notice with pay in lieu of notice, even though it may not be required under the law,” according to the state documents.
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Of those 387 people, 181 people had been on temporary furlough. The company notified them Wednesday that they would be permanently laid off. The remaining staff will be recalled, but will eventually lose their jobs permanently between now and the end of September.
On Thursday, BRP announced the first quarter 2020 revenues of $1,229.8 million, a decrease of $103.9 million, or 7.8% compared to the same period in 2019. Reported gross profits for that same period were $235.1 million, a decrease of $65 million, or 19.1 percent.
Company officials announced plans to re-orientate and reorganize its global marine product.
“Our Sturtevant, WI, facility, will be repurposed for new projects to pursue our plan to provide consumers with an unparalleled experience on the water,” according to the press release.
The company signed an agreement with Mercury Marine to support boat packages and continue to provide outboard engines to its boat brands.
‘We will continue to supply customers and our dealer network service parts and will honor our manufacturer limited warranties, plus offer select programs to manage inventory. These decisions will impact 650 employees globally,” the press release stated.