- BRP Inc. (TSX:DOO) has revealed further cost-cutting measures as COVID-19 continues to impact its operations
- Certain capital expenditures, investments and projects have been deferred in an attempt to retain cash reserves
- Both permanent and temporary layoffs have been implemented, with a global freeze now placed on all hiring
- President and CEO, José Boisjoli, will forgo his salary, and other executive and corporate employees have taken pay reductions
- BRP Inc (DOO) is currently down 7.12 per cent to C$26.21 per share, with a market cap of $2.45 billion
BRP Inc. (TSX:DOO) has revealed further cost-cutting measures as COVID-19 continues to impact its operations.
Based in Valcourt, Quebec, the company owns a portfolio of brands that manufacture a range of powersports vehicles, propulsion systems and boats, as well as associated parts, accessories and apparel.
BRP’s production facilities extend around the world, with sites in Canada, the US, Mexico, Finland, and Austria, and a total workforce of 13,000 employees.
However, with the outbreak of COVID-19 and the subsequent shutdown of many of these operations, the company is taking further action to improve its financial flexibility and maintain liquidity.
Firstly, both temporary and permanent staff layoffs have been implemented. This is in addition to reduced working schedules in some countries and a global freeze on hiring.
BRP’s President and CEO, José Boisjoli, will also forgo his salary entirely, and the Board of Directors will give up the cash portion of their compensation.
Other Directors and Vice Presidents will receive a 15 per cent cut to their salaries, while most office employees will have their pay reduced by 10 per cent.
Commenting on the new measures, José said that these are challenging and unprecedented times. He was also quick to say that the company is taking all the necessary precautions while it prepares for a rapid move back to regular business when market conditions improve.
“We entered this crisis from a strong position, with significant market share and financially solid. And with key strengths to rely on: our product portfolio, geographic sales and manufacturing footprint.
“This, along with the talent and resilience of our people and our experienced management team, provides us with a solid base to navigate through this period of uncertainty,” he said.
In addition, BRP said that it is continuing to work with local authorities to access emergency relief measures and wage subsidy programs in order to mitigate the impact on its employees.
BRP Inc. (DOO) is currently down 7.12 per cent to C$26.21 per share at 10:42am EST.