Weber replaced CEO Chris Scherzinger and warned of upcoming layoffs Monday, sending shares down 20% as the grill-maker wrestles with a drop in sales and embraces “historic macroeconomic challenges.”
Weber named current chief technology officer and former Royal Dutch Shell senior executive Alan Matula as interim CEO as the company launches a search for a permanent CEO.
The company did not disclose how many layoffs there could be or when they will occur, but said it will provide additional details next month on a list of potential moves that also includes “tightening its global inventory levels.”
Slower retail traffic in stores and online “in all key markets” from rising inflation, supply chain issues, fuel prices and “geopolitical uncertainty” accounted for a decline in net sales, which fell 7% in the quarter ending June 30, while net losses hit $51 million, as first reported by Reuters.
Weber shares (WEBR.N) are down 19.7% Monday morning, to $6.03 from $7.54 Sunday afternoon, and down to a third of its value last August ($18.07.
Weber, which is based in Illinois, is far from the first U.S. company to announce potential job cuts this year, as economists warn accelerating inflation could fuel a recession. Dozens of companies, from tech start-ups to automakers and banks have already made significant layoffs this summer, as inflation hit a 40-year high, spiking 9.1% over last June, according to a June report from the Bureau of Labor Statistics.