While layoffs have already hit grill makers Weber and Traeger, now Napoleon is laying off 80 workers. The reasoning for the layoffs isn’t due to the swing in grill sales from the pandemic according to Napoleon CEO Mike Tzimas.
In an interview with Orillia Matters, Tzimas said that their business model is to perform layoffs after the grilling season ends. While the production highs from the pandemic were cited, there are some differences though, as he laid out.
- The tight labor market made it so they couldn’t hire “casual labor” and instead had to hire permanent, full-time workers
- They added people during the pandemic due to significant turnover and absenteeism
- Direct labor is still 23% higher than it was before the pandemic.
Tzimas expects that as the glut of inventory goes through the system they’ll be looking to hire additional staff, as in previous years. It would appear though that unless there’s a shift in the labor market a permanent hire in the spring, isn’t necessarily permanent.