The Toro Co. last week announced that it will reduce its worldwide salaried and office workforce by approximately 100 employees to better align the company’s cost structure with the current economic and business environment. The company will offer assistance to employees affected by the workforce reduction in the form of severance, extended insurance coverage, and counseling and outplacement services to help with their transition.
“We had already taken a number of actions to adjust our cost structure to meet the expected challenges of fiscal 2009,” said Michael Hoffman, Toro’s chairman and CEO. “Regrettably, we have reached the point where it is necessary to further reduce our workforce.”
Combined with its previous actions of a voluntary retirement program and not filling open positions, the company will reduce its overall workforce by more than 10 percent from the previous year.
The company also announced additional cost-saving actions that will impact remaining employees. Effective immediately, officers’ salaries will be reduced by 10 percent for fiscal 2009. Regularly scheduled salary increases for all employees will be suspended, and four furlough days will occur during the remainder of the year. Toro will continue to monitor production volumes and take appropriate actions in response to customer demand for its products.
Based in Bloomington, Minn., The Toro Co. is a worldwide provider of turf and landscape maintenance equipment, and precision irrigation systems.
