Nautilus, Inc. plans to reduce its workforce by about 140 positions,
including about 80 at the company's headquarters, to trim its expenses
by more than $10 million on an annualized basis.
The adjustments equate to about 9 percent of the company's workforce
and about 12 percent of its annualized compensation. Severance and
benefits packages based upon years of service are being offered to
affected staff. Nautilus is based in Vancouver, WA.
“We are pursuing this workforce reduction, along with a number of other
restructuring initiatives, to improve operating margins in a period of
lower-than-expected sales,” said Bob Falcone, chairman and CEO of
Nautilus, Inc. “We regret the impact to staff, families and communities
but must make tough decisions now to assure a bright future for this
company and long-term value for our shareholders.
On Oct. 11, Nautilus said it signed a proposal letter to expand its
debt facility by a third to a $150 million loan facility. It expects to
close the new 5-year facility by the end of the year. In the interim,
the company is negotiating an amendment and has executed an agreement
to secure its existing five-year, $125 million unsecured debt facility
with its existing lenders led by Bank of America.
Nautilus's include Nautilus, Bowflex, Schwinn Fitness, StairMaster, Universal, and Pearl iZUMi.