Fender just laid off a whole bunch of people.

HypotenusLuvTriangle

Country Gent
Double Platinum Member
Oct 27, 2010
3,812
Whittier, Ca
Ooooof, Fender just laid off 300 people today from the Corona, Ca facility. yikes. They were "redundant".

 

juks

Country Gent
Gold Supporting Member
Nov 26, 2020
3,254
Fremont, California
Not good. They seem to be discounting pretty heavily too. I'd like to know how many people they hired during the covid boom. I.e. is their headcount now back to pre-covid lever or lower?

Screenshot_20220804-150528.jpg
 

wabash slim

I Bleed Orange
Feb 10, 2010
18,804
lafayette in
Have we reached (or passed) the saturation point for guitars?
US wages exceed foreign countries by a long shot, so, labor costs are a likely issue.
I doubt Fender hired extra folks during the pandemic.
 

juks

Country Gent
Gold Supporting Member
Nov 26, 2020
3,254
Fremont, California
Have we reached (or passed) the saturation point for guitars?
US wages exceed foreign countries by a long shot, so, labor costs are a likely issue.
I doubt Fender hired extra folks during the pandemic.
Lot of companies did to respond to the bump in demand. Including the one I work for. With exactly the same result when the demand now slows down.
 

blueruins

Friend of Fred
May 28, 2013
5,062
Savannah, GA
Apparently there’s also a sort of slingshot affect when the supply shorts that we’ve seen are all relieved at once and there’s a glut of products that hit the market. Now everyone’s seemingly overstocked just when nobody has any money
 

drmilktruck

Senior Gretsch-Talker
Double Platinum Member
May 17, 2009
20,334
Plymouth, MN
Other industries had the opposite problem. They laid people off 2 years ago and then they didn't come back, leaving companies short staffed.
 

drmilktruck

Senior Gretsch-Talker
Double Platinum Member
May 17, 2009
20,334
Plymouth, MN
"Nobody wants to work!"
Lay me off and I'll probably not want to come back.

That's right. One of our PAs was a supervisor at another clinic, helped set up their early COVID processes and, once that was done, they laid her off. No surprise she didn't go back there. Our gain. Add in early retirements, that's a lot of people not coming back. Now curiously the hospitals in town are dragging out negotiations with the nurses' union. Bad move, more will leave.
 

Henry

I Bleed Orange
Apr 9, 2014
19,212
Petaluma
Have we reached (or passed) the saturation point for guitars?
US wages exceed foreign countries by a long shot, so, labor costs are a likely issue.
I doubt Fender hired extra folks during the pandemic.
I agree. 2 of the most interesting factoids from the article:

Lost staff amounts to about 200-300 guitars per day. That's just the number lost in USA. Can't imagine the total global production numbers as I believe the vast majority are produced outside the USA.

18 new jobs still hiring in, among others, robotics and production planning. Seems like they may shift to less labor intensive production, which may be a reaction to rising wages.
 
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Hammerhands

Country Gent
Aug 26, 2011
2,514
Winnipeg
So...if you go to Chicago Music Exchange and look up right-handed American made Jazzmasters, everyone of them says, "More expected January 2023" or February, March, April, May, June or July 2023.

None of these people are making Jazzmasters?

Nobody in Canada has seen an American Jazzmaster in a store in 2 years.

Most people aren't going to buy a guitar sight unseen.
 

Dansimpson

Electromatic
Jul 21, 2022
37
Dartmouth, Devon, UK
"Nobody wants to work!"
Lay me off and I'll probably not want to come back.
Furlough in the UK, I loved it, 2/3rds of my wage to stay at home, it was like practise for retirement lol.
I have 2 years exactly left to work, if I won anything over £20k on a lottery, then I'd retire early, and that "need" amount drops each day.
USA Labour costs for Fender? Well there's a thread on here discussing about where things are made, does it matter?
I woukd guess the numbers of people in the "matter" camp are diminishing, we saw this in the UK about 40 years ago, so production moved abroad.
Work is overrated anyway lol.
ATB
Dan
 

budglo

Electromatic
Feb 26, 2019
73
Ohio
I hope it’s not true . Has anyone verified this story. Some random youtoober , then an article on guitar.com that quotes the same youtoober and a few things on Glassdoor and LinkedIn . Not really what I would call reliable news. I can’t find anything anywhere else , not anywhere .
 

wabash slim

I Bleed Orange
Feb 10, 2010
18,804
lafayette in
Furlough in the UK, I loved it, 2/3rds of my wage to stay at home, it was like practise for retirement lol.
I have 2 years exactly left to work, if I won anything over £20k on a lottery, then I'd retire early, and that "need" amount drops each day.
USA Labour costs for Fender? Well there's a thread on here discussing about where things are made, does it matter?
I woukd guess the numbers of people in the "matter" camp are diminishing, we saw this in the UK about 40 years ago, so production moved abroad.
Work is overrated anyway lol.
ATB
Dan
I was offered an early retirement package, made redundant as you Brits call it.
Considering my health was going downhill due to the demands of the job, I jumped on it.
Glad I did for multiple reasons aside from my health. The politically correctness of working at a uni was getting too oppressive, the powers that be were becoming more ridiculous by the day, and I was just done with it all. First year was rough, then government's social security kicked in. My job wasn't one that could move overseas---I was a stagehand/projectionist, basically a service industry. Working in the Ivory Tower was a thankless endeavor, and the 14-16 hour days had worn me down too far.

As it is now, I'm still catching up on sleep from while I was in the service 50 years ago. Soon, I'll start catching up on sleep from the months on end without a day off. The afternoon naps are worth it. I read, play music, and surf the web. Having the grandkids close is a blessing.
Everyday above the dirt is a good one.
 


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