Burton implemented cost savings initiatives last week as it reduced head count and implemented a reduction in salaries across the board. In a move that should likely garner more attention than it has, Burton owners Jake and Donna Carpenter have chosen to eliminate their own salaries for the year. In addition, the pay cuts will be at higher percentages for employees with larger salaries.
Burton also cancelled all bonuses and merit increases for its North America unit while also temporarily reducing its 401(k) matching program.
However, those efforts still could not prevent some layoffs, with Burton saying that it let go less than 5% of its staff in North America, bringing the company's total headcount in North America to 663. After staff reductions, Burton currently employs 418 employees at its headquarters and factory in Vermont, 17 employees at DNA Distribution in Ohio and 154 employees at its California offices. Globally, Burton employs 962 people.
“The shareholders at Burton are my wife Donna and myself,” says Jake Burton Carpenter, founder and chairman of Burton. “Our goals for Burton are not short-term, but the long-term prosperity of our brands, boardsports and the people involved. Donna and I want to thank our dedicated employees for their contribution to the company's cause through a temporary pay reduction. The bottom line is that their sacrifice is preventing a far more significant layoff and will allow us to come out of this economic downturn stronger than ever.”
