Joy Global To Temporarily Lay Off Workers
It’s been a tough year for Joy Global, which has made business out of underground and surface mining heavy machinery while headquartered in Wisconsin with several brands throughout China. On the heels of disappointing third quarter results, the company has said that it is making plans to do temporary layoffs, which will affect some 113 workers.
The target of the upcoming layoff will be workers in a Joy Global Facility located in West Milwaukee, near Miller Park Way and National Avenue. Moreover, FOX6 News reports that the layoff will mainly affect those employed in Joy Global’s heavy fabrication and welding department. Of the decision, Joy Global President for Surface Mining John Koetz explains that the company needs to “temporarily adjust” a part of its manufacturing operations due to lower demand and current challenges faced in the mining industry.
Weak demand seems to be what has been plaguing the company. And this has actually already impacted Joy Global negatively, from the bookings to the service bookings and net sales. According to the third quarter of fiscal 2015 earnings result, which was reported earlier this month, bookings were down by 31% from a year ago to $635 million. Meanwhile, service bookings also suffered, experiencing a decline of 16% from the previous year and ending at $537 million. In addition, net sales also went down by 10% and ended at $792 million.
Joy Global President and Chief Executive Officer Ted Doheny admitted that the quarter has been tough. In fact, he also said there is a need to take “additional cost reduction actions to align with lower market demand.” It makes sense that the upcoming temporary layoff is part of this plan.
The temporary layoffs are expected to start in November.