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Specialized announces realignment and layoffs

Published February 9, 2016
Company says it's focusing on innovation, marketing and supply chain as it reduces its global workforce by 3 percent.

MORGAN HILL, Calif. (BRAIN) — Specialized announced that it has made substantial organizational changes as it tightens up its structure to better serve riders and retailers.

The company said it’s reducing its global workforce by 3 percent. A spokesperson said less than 50 people are being laid off at its Morgan Hill headquarters. And the layoffs are across the board.  

As part of the restructuring, Jeff McGuane is assuming the role of USA market leader. He joined the company in January. Stu MacLennan, who joined Specialized last April from Apple, is leaving. MacLennan was managing director of Specialized USA. 

“We are tightening up our structure and focusing on three key areas: innovation, marketing and supply chain,” said Mike Sinyard, Specialized's founder and CEO. “We are investing in new R&D space in Switzerland, Taiwan and Morgan Hill that will keep us at the forefront of cycling innovation. We are focusing on marketing that will expand the global market for our brand and help our retailers drive traffic and sales. And finally, we are investing in our supply chain to ensure we are delivering the best product at the best price to riders and our retailers. All of this is an investment in our future.

“We have made the difficult but necessary decision to reduce the number of employees and realign the organization. Our employees are, and have always been, what make this brand so special,” Sinyard added. “This decision, and the impact on our teammates, is of course very hard.”

Specialized is offering severance packages and services to employees affected. 

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