OOLTEWAH, TN (BRAIN)—American Bicycle Group has laid off 25 percent of its Tennessee manufacturing workforce along with vice president of sales Steve Boyd.
Other employees were let go as well including independent sales reps. The company employs roughly 100 people.
"As a result of the current economic conditions, the company has reduced overall costs and expenses," said Peter Hurley, chief executive officer of American Bicycle Group, commenting to BRAIN on the layoffs. "[We've] realigned our sales force with a concentration on service through our inside sales group. We feel this will accomplish the expense reductions needed while minimizing the effect on customer service."
According to Hurley, ABG will "continue to develop new products during this downturn with confidence that the future will again be bright for our industry and ABG.
"We regret the pain and discomfort of those laid off and wish only the very best for their future," Hurley added.
This past December ABG launched the industry's first ever direct-to-consumer rebate program for its Litespeed brand, where consumers can get up $350 cash back on certain models.
ABG also owns Merlin and Quintana Roo.