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Zippo Manufacturing Co., announces layoff of 80 employees
By KYLE MILLIRON
Era Reporter
kylem@bradfordera.com
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| Era photo by Francie Long |
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Zippo Manufacturing Co., a 76-year-old lighter-making company, has laid off more than 15 percent of its workforce since June, as another 80 employees lost their jobs Thursday, according to an announcement from the company.
According to an employee of Zippo, security personnel escorted laid off workers from the business after company officials sprung the layoffs on the employees Thursday.
This newest round of layoffs comes just three months after the company laid off 35 workers on June 11, citing faltering domestic lighter sales.
Company officials label “corporate initiatives that have resulted in improved efficiencies and operating capabilities” as the cause for the most recent round in “reduction to the staffing levels,” as the company phrases it.
Zippo officials would not comment on what shifts or which employees the layoffs affected. According to a company employee, whose name is withheld because the employee is not permitted to comment on the issue, employees were let go if they had fewer than 16 years of experience with the company.
Reports reveal the company has hired an outside consulting agency to evaluate its processes and procedures.
In February of 2005, Gov. Ed Rendell came to Bradford with $1.27 million earmarked for the company as part of Impact Bradford, a program aimed at stimulating Bradford’s economy. In return, Zippo officials said they would create 105 new jobs as it developed a new butane lighter, ZippoBLU.
At that point in 2005, the lighter-maker had around 800 employees. Now, after being given more than $818,629, Zippo shows an employment number of under 700, dropping the 105 employees rather than adding them.
Zippo has offered an early-retirement program to a number of employees in an attempt to minimize the number of laid-off workers, according to company officials. If some employees take the retirement package, officials said, some laid off workers may be brought back.
The officials also report Zippo is working with out-placement groups to identify new job opportunities for those laid off.
“While we regret these layoffs, Zippo must make these adjustments to the organization in order to be able to operate effectively to maintain the financial strength necessary to compete in today’s challenging global business environment,” said Greg Booth, Zippo president and chief executive officer.
Zippo’s business environment has been uniquely challenging in the past few years. The company has fought to curtail counterfeit lighters, wrestled with the Transportation Safety Administration over airline regulations and hindered by anti-smoking legislation.
In 2007, company officials said that TSA regulations, enacted in 2005, against carrying lighters in a plane’s passenger cabin cost the company $4 million to $5 million a year on sales and gift lighters. That equates to about 50 jobs, the official added.
Foreign counterfeiting of Zippo lighters has also cost the company tens of millions of dollars, Booth said in 2007. The problem is being addressed in some countries, with agencies conducting raids throughout Europe and the Far East, but 25 to 30 jobs have been lost in the knock-off situation.
Booth also said that anti-smoking legislation has led to a 3 to 4-percent drop in wholesale distribution.
According to a press release from Zippo, no additional layoffs are expected at this time.
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