BlueLinx makes workforce cuts
BlueLinx said that the impact of COVID-19 has forced the company to make operational changes, including downsizing its workforce.
The building products distributor reported that it has paused all hiring while furloughing about 15% of its corporate workforce.
The Marietta, Ga.-based company also said that it has made “substantial headcount” and operating expense reductions in response to demand declines in some of the markets it serves. BlueLinx serves about 40 states and has more than 2,200 employees. The company did not disclose how many employees have been let go.
Other moves include reducing or eliminating executive and management base salaries for the next six months.
“The pandemic has rapidly evolved, but we are evolving with it,” said Mitch Lewis, president and CEO. “We began preparing for the pandemic in late February, and in early March we implemented new policies and procedures to protect our associates, serve our customers, and support our suppliers.”
“We then moved quickly to develop plans and take actions that should give the company the financial and operating flexibility necessary to provide long-term value for our stockholders and other stakeholders.”
According to Lewis, all of the states where BlueLinx operates have designated the company’s business as essential.
“While the next several months hold a great deal of uncertainty, we feel confident we are taking the necessary steps to continue to support our country’s infrastructure needs as we navigate these challenging circumstances,” Lewis said.
As of April 1, BlueLinx had reduced its term loan principal balance to approximately $69 million. The distributor also said that it has about $95 million to $100 million in cash on hand.
BlueLinx noted that it has not experienced any supply chain disruptions during the coronavirus pandemic.
The company also reported that first quarter 2020 sales are forecast to be 9% higher than the prior year period when excluding the impact of first quarter 2019 net sales attributable to the discontinued legacy Cedar Creek siding line. Last year, BlueLinx reported first quarter sales increased 46% to $639 million.
The building products distributor reported that it has paused all hiring while furloughing about 15% of its corporate workforce.
The Marietta, Ga.-based company also said that it has made “substantial headcount” and operating expense reductions in response to demand declines in some of the markets it serves. BlueLinx serves about 40 states and has more than 2,200 employees. The company did not disclose how many employees have been let go.
Other moves include reducing or eliminating executive and management base salaries for the next six months.
“The pandemic has rapidly evolved, but we are evolving with it,” said Mitch Lewis, president and CEO. “We began preparing for the pandemic in late February, and in early March we implemented new policies and procedures to protect our associates, serve our customers, and support our suppliers.”
“We then moved quickly to develop plans and take actions that should give the company the financial and operating flexibility necessary to provide long-term value for our stockholders and other stakeholders.”
According to Lewis, all of the states where BlueLinx operates have designated the company’s business as essential.
“While the next several months hold a great deal of uncertainty, we feel confident we are taking the necessary steps to continue to support our country’s infrastructure needs as we navigate these challenging circumstances,” Lewis said.
As of April 1, BlueLinx had reduced its term loan principal balance to approximately $69 million. The distributor also said that it has about $95 million to $100 million in cash on hand.
BlueLinx noted that it has not experienced any supply chain disruptions during the coronavirus pandemic.
The company also reported that first quarter 2020 sales are forecast to be 9% higher than the prior year period when excluding the impact of first quarter 2019 net sales attributable to the discontinued legacy Cedar Creek siding line. Last year, BlueLinx reported first quarter sales increased 46% to $639 million.