HUGE layoffs at Daniel Defense

[Stickman]

As a business owner I would not have done some of what Daniel Defense did. By this I do not mean not laying people off. I mean not stupid marketing like football game commercials and car sponsorship.

I would have focused on producing products in demand. Not on the products I wanted to sell.

Daniel Defense once had the right idea. They then changed. Those changes were their mistake.


And there's nothing you need to be business savvy about to know that furniture of theirs is absolutley hideous. It's just plain old bad taste. You want to sell a whole rifle? Put furniture on it people actually want, like Magpul.

TMS,

Good clear points. In hind sight, there can be little doubt that sponsoring everyone under the sun was a great move as opposed to holding a cash reserve. I have heard people comment that instead of spending that money, the money could have been used to make the RIS series that people claim to want. This idea sounds legit, but it doesn't clear up machines that are running at full capacity to produce the items which are ordered by stores and dealers.

No one likes to give money to the GOV in taxes. Maybe the sponsorships were a better write off than other things. Maybe continual expansion and property were 100% solid investments. There are lots of maybes, to include the idea of those sponsorships rocketing them to the status they currently have. It is a hard call to make, especially with all the variables. I do not envy Marty in the decisions he had to make.

Lastly, at least Marty Daniels isn't like one of his (albeit smaller) competitors who decided to go public and back the NRA against bumpstocks, then change his mind when he got negative feedback, then have people post for him that he was misunderstood after his postings were deleted. Marty has always been pretty standup to the best of my knowledge. The changes DD is forced to make won't be easy, but some of them are going to be pretty obvious, and should help them out long run. I hope they get back on target and do well.

[Stickman]

I forgot the furniture..... I agree it isn't to the visual standard of Magpul which has ruled the stock kingdom for the last decade or so, but there is no doubt that making them themselves nets them more money. Heck, I would like to see the old school CAR style stock come back into play, but maybe I'm just crazy.

[1168]

I forgot the furniture..... I agree it isn't to the visual standard of Magpul which has ruled the stock kingdom for the last decade or so, but there is no doubt that making them themselves nets them more money. Heck, I would like to see the old school CAR style stock come back into play, but maybe I'm just crazy.

I actually like the DD grip, a lot. I've been phasing it onto all of my rifles, switching from mostly Magpul stuff. I agree about the CAR stock, wish it were more popular. Its what my work guns wore until 2016, when I separated. The only other stock I have ever loved is the Magpul CTR or MOE. The CAR stock is my favorite of all the issued varieties I used. Pretty much the original minimalist.

[Jmedic_]

Everyone liked them 2 years ago and they were a Tier 1 brand lmao.


Sent from my iPhone using Tapatalk

You didn't get the credit you deserved for this post. So, I'm giving it to you now. Well said.

[TMS951]

TMS,

Good clear points. In hind sight, there can be little doubt that sponsoring everyone under the sun was a great move as opposed to holding a cash reserve. I have heard people comment that instead of spending that money, the money could have been used to make the RIS series that people claim to want. This idea sounds legit, but it doesn't clear up machines that are running at full capacity to produce the items which are ordered by stores and dealers.

Prior to posting I had considered the idea of machine time availability. My business is in the performance aftermarket for German cars, we deal with a lot of the same type of production equipment in the field other than barrel making stuff.

He's my line of thinking. To cut almost a 1/3 of your work force there must be plenty of machines. Those employees that were not running machines but were assembling rifles still needed enough parts being made to feed them to build rifles.

And I've got a two for one here. Sell the 6920 equivalent that is now discontinued, it's shown a few pages back a DDXV maybe? This brings you into a wider market while maintains a quality fire arm, no expanse type garbage a 6920 equivalent. Now you freed up a machine to make your RISII pic rails. Basicly take one of their socom rifles and separate the rifle and rail, selling them separate.

By all accounts Marty Daniel seems a super guy. I wonder if the better decisions of yesteryear were his and as he grew and hired execs they fed him bad ideas. Maybe ideas business school told them were great, and may be for a clothing company or something, but not for a gun company. I definitely hope some higher ups at DD got laid off as well.

[fledge]

If I was starting out and found the KAC SR-15 that Outlander linked for $1800 NIB vs. a DD at $1500 retail/street price I would opt for the KAC. But again, I have never seen prices that low on a KAC before. Perhaps this is due to the current market saturation?

If yo look at the link more closely, that price wasn’t for a full rifle. The full rifle was in the pic. The description says upper only. I can’t find a complete SR15 under $2300 anywhere.

[markm]

I would have focused on producing products in demand. Not on the products I wanted to sell.

Exactly. I've seen many "WTB" (want to buy) RIS rail ads in the EE. I even emailed DD myself to see if the RIS II Mk18 FSB would ever be available again?

[Shooterman017]

Another update.

http://savannahnow.com/news/2017-10-...s-new-facility

“We waited as long as we could to make these changes because we care about our people,” Marty Daniel, president and CEO of Daniel Defense, said in a press release on Thursday. “Those affected by these layoffs are real people with families. They are good people. I feel it’s appropriate that we be appreciative of them and remember their contribution to our success. Our hope is that they’ll find new jobs as soon as possible. We’ve hired a firm to help them with this transition as we believe this is the right thing to do,” Daniel continued in the release. Affected employees were offered health insurance continuation benefits and outplacement services along with benefit provider information and lists of local businesses that are currently hiring, according to the release.

This is why I have been going out of my way to say that I harbor no ill will towards this company. It does suck, and lots of good people lost their jobs. I simply want to see the company recover and flourish, as do many others. Some people may not take the above quote to heart, and that is their choice. Facts is facts, and what is stated there I find to be true...refer the bolded line. We weren't totally hung out to dry, but it still does suck. It is unfortunate any company would have to make such decisions, and ideally nobody should have to deal with it. Such is life. And despite the lack of official number of employees affected, it is larger than previous layoffs.

Any employment agreements signed as a condition of employment signed by those affected when they were hired will remain in effect. Employees were not asked or required to sign any additional documents upon their departure, according to the release, despite the social media rumors of the company requiring employees to sign non-compete agreements.

Point blank, nobody was made to sign a non-compete on the way out. The way I have seen it worded alluded to employees having to sign non-competes at the time of getting their paperwork and turning in badges. Not true. Myself, and everybody else I knew and worked with had to sign the same paperwork when we started. Frankly...where else are we going to go in this part of GA/SC to build competitors guns...? I mean. I can't think of anywhere.

[Feline]

Another update.

http://savannahnow.com/news/2017-10-...s-new-facility



This is why I have been going out of my way to say that I harbor no ill will towards this company. It does suck, and lots of good people lost their jobs. I simply want to see the company recover and flourish, as do many others. Some people may not take the above quote to heart, and that is their choice. Facts is facts, and what is stated there I find to be true...refer the bolded line. We weren't totally hung out to dry, but it still does suck. It is unfortunate any company would have to make such decisions, and ideally nobody should have to deal with it. Such is life. And despite the lack of official number of employees affected, it is larger than previous layoffs.



Point blank, nobody was made to sign a non-compete on the way out. The way I have seen it worded alluded to employees having to sign non-competes at the time of getting their paperwork and turning in badges. Not true. Myself, and everybody else I knew and worked with had to sign the same paperwork when we started. Frankly...where else are we going to go in this part of GA/SC to build competitors guns...? I mean. I can't think of anywhere.

DD's effort to care for its former employees is why my next upper will be a DD MK18/M4A1. Thanks for the update, shooterman.

[Averageman]

Perhaps more relevant was the decision to move facilities?
I'm pretty sure keeping up with the changing market forces while moving production was a strenuous exercise in logistics. Now add to that a change in market forces by Colt dropping prices and coming forward with a trend toward more spartan accouterments.
Pretty daunting shift while relocating isn't it?

Like I said I have one of the very first M4V7's and it's been a fine rifle. It's too bad so many find the need to apply a swift kick while DD is down.