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Gibson layoffs


powerpopper

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I have heard dark rumours from more than one person that Gibson are going out of business. I REALLY hope this isn't true.

 

I have only "heard" this from one source and it was on this board, oddly enough. Personally, I find that rather unlikely because the brand has value. Rather than go out of business (if it came to that), I would think they would be acquired by another company. This does not mean all will be well and remain the same...remember CBS/Fender, anyone?...but my guess is that the brand would endure.

 

In the meanwhile, if Gibson goes under, it will not be for a lack of purchases from me. Unfortunately, my wife tells me I've done all I can to "help" Gibson at least until the end of the year. That's what I get for trying to be "helpful"...=D>

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Read somewhere else (sorry' date=' don't have the link) that Gibson had some layoffs late last week. I certainly hope Bozeman was not affected. Does anyone know if this is the case?[/quote']

 

Click on Gibson Lifestyle, above. The article about the layoff is in the news section.

 

My heart goes out to those who lost thier jobs, and I hope they find work, soon.

 

Red 333

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I wonder how much of this is spin?

 

The news section states that music sales have dropped 20% in the first quarter of 2009. Interestingly enough, March isn't over yet and they feel they have all the stats. The last time I heard, a quarter was three full months.

 

Then, they don't say what the 20% drop is relative to. Is it 20% lower than the last quarter of 2008 - i.e., Christmas? Or, is it 20% lower than the first quarter of 2008?

 

I can't imagine how the Gibson brand could bankrupt given its market share, but looking at some of the other acquisitions the company has made over the past thirty years, I wonder if the brand is being watered down.

 

I remember Guild guitars as American made, but affordable instruments. Fender bought them, and suddenly they produce a superior product in China. For many of us, the buy by Fender seemed like a bad thing - but if you own a Chinese-manufactured GAD-30, I am sure you now support the change.

 

If Gibson does indeed implode under its own advertising budget, I am sure Fender or some other company will step in to pick up the pieces. Whether that means Gibson remains the same or becomes something else is anybody's guess - but you can't let a legend die.

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Gibson isn't going anywhere. Businesses will shrink and expand it's workforce as necessary during down and up revenue periods. Sadly, people are negatively effected when retractions come in the form of being laid off. Not fun, not at all. I do question though why in these tough economic times why we saw across the board price hikes of substantial proportions from the big manufacturers. Surely this won't drive revenues if people stop buying.

 

What it does is drive down demand and makes people look to the used the used market for bargains. I'll say this, it's helped me sell some of my guitars that I bought in the last few years rather easily of recent.

 

I'll say a prayer for those folks and their families who have been negatively effected by these cuts, and that they rebound quickly to stay on their feet...

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I wonder how much of this is spin?

 

Then' date=' they don't say what the 20% drop is relative to...

 

If Gibson does indeed implode under its own advertising budget, I am sure Fender or some other company will step in to pick up the pieces. Whether that means Gibson remains the same or becomes something else is anybody's guess - but you can't let a legend die.

 

 

[/quote']

 

Sales are usually compared as the same period last year to the same period this year.

 

I doubt Gibson is any real danger. There will certainly be other casualties before Gibson.

 

Gibson is probably better positioned to weather the economic storm as well if not better than any other guitar manufacturer, because it is strong in several areas: as Gibson, it is competitive in both the high-end electric and acoustic markets; as Epiphone, it is competitive in the value-end of the market in both electrics and acoustics. Few other manufacturers have products that cover that spectrum. Think of this as four legged stool. The other legs (hopefully) can support the business if one leg drops out. Other manufacturers have fewer legs to stand on.

 

Fender is similarly well positioned. Obviously it is a leader in the electric guitar market in both the high and low end. It also has a robust amp and bass business, too, in addition to acoustic sales under the Guild name.

 

Gibson also has Baldwin pianos, and some other guitar marques in thier portfolio, in addition to their iconic name and excellent reputation. And by all reports, it is an excellently managed company. Let's pull for them, and hope they can return to their previous production levels and hire those layed off workers back.

 

Red 333

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As someone who has worked in Human Resources for most of my professional career, I have seen my share of layoffs. There are obviously real challenges out there and layoffs are part of that. But the paranoid economic climate has allowed otherwise healthy companies the opportunity to get rid of some deadwood and/or reorganize to save costs.

 

You never know just where the cuts took place. They could have laid off 20 administrative assistants or low-level (from a compensation perspective) marketing people. On the other hand, if they're laying off people who are building guitars and cutting production, I would start worrying...

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I agree, I think the reduction is probably in comparison to the same time period last year.

 

In my own industry, demand has slowed down quite a bit. So line jobs get cut, on hand inventory shrinks. We see cuts in things like travel, benefits, reductions in advertising, projects get put on hold, IT allocations shrink to sustain rather than improve levels, a general attitude to spend less money. And of course layoffs. As the businesses lean out (no reason to have a workforce capable of producing and overheading (is that a word? haha) 10 million units if the whole market now, let alone your share is only 2 million. Heck we even got rid of our office coffee and put tight controls on ordering supplies. We need these thigns to do our jobs, but we also need to keep a closer watch on them and make sure the notebooks are being used in meetings and not some intern's college class.

 

What I do see though is that larger companies will weather the storm as they have more assets to live off of while times are bad and as a by product as the smaller companies closer to the margin go under, the survivors usually end up with more market share.

 

I wouldn't think Gibson will go away, but R&D, customer service, endorsements and some of the more esoteric things that don't immediately generate revenue will probably start to take hits. New models may be slower coming out as the desire to risk lessens.

 

I remember the old Made in the USA cmapaigns during the 1980's. We need something like that but we also need to do something about how cheap some foreign goods have become. I was looking around a little and I can buy a blanket made in China for $20. I'd be willing to pay $40 or even $50 for the same thing made here, but the problem is that the same thing made here costs $260. I'm not sure what the solution to that particular problem is. I will continue to make a conscious effort to buy domestic where I can, but in some situations, I feel like I'm willingly being taken advantage of by both unscrupulous vendors and my own government's refusal to take sensible measures to level the economic playing field.

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I sure hope there isn't one iota of truth as to the fact that Gibson may be in trouble. There are so many companies in trouble right now. Everybody is having to tighten their belt in all aspects of their lives. I thank the Good Lord that my job is safe (drive a big rig) and that I make a darn good living doing what I do. I run this nation's highways and I can see the effect the economy is having on people out there. I see more and more people at onramps with cardboard signs. More hitchikers wherever I go. Crowds of homeless people under the overpasses. Whole families living in their cars at truckstops offering to shine our rims, clean our trucks, unload our freight. Hookers in the truckstops that look like desperate housewives. Panhandlers and scam artists everywhere I go. It's sad. I get to a lot of cities, coast to coast, and I see it everywhere now. Everybody you talk to seems to know someone who has been laid off. I think it's going to get worse before it gets better, the question is how much worse is it going to get?

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Hey Gibby - Been with Crete Carrier 12 years this summer. The trucking industry has been very good to me. I could never find another employer that would put up with my crap and absences the way they do. I can take Leave Of Absence for up to a year without having to rehire. So, when I want to tour or do recording sessions or take time off for whatever it's as simple as a phone call when I want to return to work. Whiz in a cup, get back in a truck, it's that easy:) The money is great. I get to see places I would never see in any other line of work. I consider myself a paid tourist hah. Lots of time alone, but I take my guitar, have a digital 8-track portable studio, laptop, toys, etc. I look at that Freightliner like it's a rolling isolation booth lol. Thanks for compliment, man:)

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I have only "heard" this from one source and it was on this board' date=' oddly enough. Personally, I find that rather unlikely because the brand has value. Rather than go out of business (if it came to that), I would think they would be acquired by another company. This does not mean all will be well and remain the same...remember CBS/Fender, anyone?...but my guess is that the brand would endure.

 

In the meanwhile, if Gibson goes under, it will not be for a lack of purchases from me. Unfortunately, my wife tells me I've done all I can to "help" Gibson at least until the end of the year. That's what I get for trying to be "helpful"...[-X [/quote']

 

Oh dear God! Pleeeze don't make it Fox/Gibson! Pleeeeezzzze!!!! [-o<

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