Reports are coming in that X-Rite is reducing staff in an effort to slash expenses. Last week the company updated its first quarter revenue outlook and "additional expected cost savings for fiscal 2008."
In the announcement, Thomas J. Vacchiano, Jr stated, “While we indicated during the most recent earnings call that the Company would have a challenging first half of the year and a fairly flat top-line in the first quarter, the general turmoil in the economy has amplified this expected softness. We now expect our fiscal first quarter’s revenue to be down approximately 3% versus last year’s comparable period, this greater than expected softness has prompted us to become more vigilant in our cost-control measures. As such, we have identified additional operating and acquisition related synergies that we expect to support achievements of our financial goals in both the short and medium term.”
NBC Grand Rapids affiliate WOODTV are reporting layoffs as part of X-Rite's effort to slash expenses:
X-Rite will slash expenses and jobs because of a "general turmoil in the economy."
The company said it will not meet its outlook for the first quarter, but would not say exactly how many jobs will be cut.
X-Rite will cut $23 million from their operating expenses, and two-thirds of that in the form of jobs. The company has plants in New Jersey, Massachusetts and Switzerland, along with its facility and headquarters in Grand Rapids, where nearly 500 people work.
X-Rite has not made an official statement regarding layoffs.
Discussion
By Robert Rock on Apr 16, 2008
Honestly this does not come as much of a surprise to me. X-Rite has been on a buying/merger frenzy; I seem to recall Pantone being swallowed up first, then Amazys Holding AG, and of course the still ongoing merger/purchase of GretagMacbeth...they are becoming an absolute behemoth in the world of color management. It seems logical to expect that eventually some slimming down would occur as people and departments and divisions start taking on more responsibility. But yes, it's a real shame and I feel for those individuals that will be affected. But I still admire the quality of products this company produces. Let's just hope they don't become another Microsoft.
By Jason Allen on Apr 17, 2008
X-Rite's products are popular in the U.S., but the quality is only marginal at best. There are better equipment makers such as Techkon (German), Ihara (Japanese), and Troika (British) to name just a few.
By Nathan Duran on Apr 17, 2008
Considering how many empty promises I've received from every X-Rite executive and employee I've ever spoken to, I can't say that I have much sympathy for them. They are not capable of running their business well, so instead they elect to buy up all the competition and stick their fingers in their ears whenever they hear the phone ring. I truly wish color management weren't such an obscure niche market so the feds might have had something to say about all these ridiculous mergers. American consumers have little choice but to continue paying them for buggy products they have no intention of supporting.
By Arnie Rosoff on Apr 21, 2008
Don't forget Tobias. It seems that what goes around, comes around. In recent years, X-rite sales people have used the line that Tobias Associates was a non-factor in the densitometer business. Well, Tobias Associates is a manufacturer of the finest scanning and hand-held densitometers in the industry. We are going strong and are about to celebrate our 50th Anniversary in 2009. Our success is not because of acquisitions. Tobias has always spent special attention to customers’ needs by offering the greatest products for the best possible prices in addition to our in-house factory repair department. 50 years and still going!
By Nathan Duran on Apr 24, 2008
Densitometers aren't particularly good at calibrating monitors or RGB inkjet printers, and Tobias' site doesn't work at all in Safari, so I'll have to assume that they sell no Mac compatible products and dismiss this apples vs. oranges flavor of comparison as misguided self-promotion.
Discussion
Join the discussion Sign In or Become a Member, doing so is simple and free