Reflecting the seasonality of government contracts, which have grown in significance for Cascade Designs since 2005 but are expected to decline in 2009, SNEWS® has learned that the company will be laying off 4 percent of its workforce.
SNEWS contacted Joe McSwiney, president of Cascade Designs, who confirmed the layoffs.
"As a manufacturer that's been in business since 1972, we manage with a long-term view of our organization and the plan to be around for years to come," said McSwiney. "This year we achieved record sales, anchored by a very strong outdoor business but primarily driven by exceptional government contract sales. However, in anticipation of a reduction in government sales activity in 2009, combined with the potential impact of the economic recession, we've chosen to streamline our organizational structure. After undergoing a thorough analysis of our business, we have made the difficult decision to eliminate some positions, ultimately reducing our total workforce by approximately 4 percent."
Though McSwiney declined to offer exact numbers, SNEWS estimates that between 14 and 20 people will be affected by the layoff. The layoffs are confined to the U.S. offices and do not affect the Cork, Ireland, facility.
Military and government sales to Cascade Designs in 2007 amounted to almost $22 million, up dramatically from $7 million in 2006 and $2.6 million in 2005, according to a government watchdog website.