Daniel Defense Layoffs

[Tgrshrk99]

Saw DD just laid off about 20% of its workforce. Cause for concern? Anyone know more than what is reflected in the press release? Would anyone avoid buying one of their rifles as a result?

[LMTMRP]

That is bad news

[Stickman]

It isn't the first time they have laid people off. It is part of business, I don't see any cause for concern at all.

[GH41]

Saw DD just laid off about 20% of its workforce. Cause for concern? Anyone know more than what is reflected in the press release? Would anyone avoid buying one of their rifles as a result?

Why in the hell would a layoff influence your decision to buy a rifle from them??? GH

[LMTMRP]

Got the current correct article

Daniel Defense announces restricting
Posted: March 4, 2014 - 3:40pm | Updated: March 6, 2014 - 12:09am

http://savannahnow.com/bryan-county-now/2014-03-04/daniel-defense-announces-restricting#.UxpZ-M4vnac


Daniel Defense announced earlier this week it will reduce its workforce by 14 percent, about 35 employees, due to current market conditions.

[03scgt]

not surprised with how saturated the market is with AR's right now

[TomF]

Managing overhead in a market with volatile highs and lows is nearly impossible. The 2008 elections caused buying to go crazy and companies are forced to up their production capacity or get swept out to sea.

Then, buying stopped just as suddenly and now you have companies capable of producing rifles much higher than the lower demand that hit almost without warning.

Then Sandy Hook happens, and you're in for round two.

A lot of companies lay off and rehire employees in this industry. It's just one of the costs of a volatile market. Nothing to be worried about IMO.

[R0CKETMAN]

Maybe it was the 14% they added to fulfill last year's craze. One would assume zero negative impact on product quality.

[wildcard600]

not surprised. AR market is saturated and stagnate at the moment and the economy continues to be in the crapper. Everyone who didn't have an AR bought one, and everyone who wants another ain't got no money to buy more.

[kwelz]

Yeah this is far from concerning. Gun sales were at an all time high. Companies expanded to keep up. The smart ones did limited expansions and planned for the eventual lowering of demand. DD was one such company. They expanded but not to the point where they could not sustain themselves when things leveled out. They laid off 35 people out of about 250. Not terrible at all.

[redmist]

They are not the only major or well known AR manufacturer that has had layoffs in the last two months.

[HKGuns]

It is and should be confidence building. They are managing their business effectively and matching production and thus employment with demand.

[samuse]

I just bought a complete DD upper and a new Lite Rail III.

I'm glad they're doing what they have to do to stay in business, but I hate to hear of people losing work...

[TacticalSledgehammer]

They make a good rifle, but they needed to break out of the ar15 only mold. Before Shot show many of us DD fans were hoping to to see something in 7.62. It never happened. Instead we got a butt stock, pistol grip, and brown.

[ScatmanCrothers]

Maybe it was the 14% they added to fulfill last year's craze. One would assume zero negative impact on product quality.

Exactly my thinking. Would like to know their total number of employees after the layoffs and before the panic.

But like others have said it is just how business goes. Effectively staffing a workforce to match demand is a tough thing to do, both in estimating and implementing. Firing folks sucks, I hate doing it. But it does drive those remaining workers to not be at the bottom of the list next time cuts come around which can lead to improved production with a smaller staff and workers taking on more responsibilities. Not worried about DD at this point.

[harm]

Didn't they hire a bunch of newbies when the rush began?

Sent from my DROID RAZR using Tapatalk

[RHINOWSO]

I'd actually expect this from any manufacturer that expanded to meet the SH demand.

[Jwknutson17]

Normal business practices. Cut costs or go down with the ship. I would expect more in the near future from other manufacturers.

[RogerinTPA]

It's the economy and folks have less disposable income, but don't worry...when CT attempts a gun confiscation or another mass shooting occurs, gun sales will once again blow through the roof.

[wild_wild_wes]

Yet they announced that they would not be selling M4 RIS II in Dark Earth to civilians this year because all are going for a big military order.

[Moose-Knuckle]

Its due to their new furniture . . . :jester:

[RWH24]

Its due to their new furniture . . . :jester:
Lack of new furniture, no key mod rails...