Pelco to Lay Off 100 Workers; Forecasts Weak Growth in 2010

CLOVIS, Calif.

About 100 Pelco workers are losing their jobs as the maker of video surveillance systems deals with a slump in sales.

Most of the layoffs are at the company’s Clovis, Calif., headquarters, but some jobs also are being lost at other Pelco facilities across the United States. Pelco also says fewer workers are needed because of increased efficiency in manufacturing. The firm also expects that 2010 will not see a return to prerecession sales levels.

“Layoffs are and have always been a last option for Pelco,” says Dean Meyer, Pelco president and CEO. “This is a very unfortunate situation, but we must realign the size of operations to better match current economic conditions and to adjust for manufacturing improvements implemented over the last 12 months.”

The company says that even though an aggressive, company-wide approach to cost management was implemented throughout 2009 – including work furloughs, salary freezes and outsourcing of noncore business functions – the continued economic downturn and the shift of business toward emerging economies has created an environment that cannot sustain the company’s current U.S.-based operations.

“We are doing our utmost to support those affected,” says Meyer. “Pelco will do everything we can to help these employees find new opportunities.”

Pelco is a unit of Schneider Electric SA of Rueil-Malmaison, France.

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