Volcom cuts 8 percent of workforce, reduces salaries

Volcom said today during its Q4 and year-end earnings conference call that it cut 28 positions at its Volcom and Electric brands.

Earlier, in a press release, Volcom said the cuts totaled 8 percent of its domestic workforce and that it reduced salaries as part of a cost reduction initiative.

Fourth quarter sales were essentially flat, while full year sales rose 25 percent.

More details are below in the press release. I'll also have more to report after listening to the conference call this afternoon.
Volcom Reports Financial Results for 2008 Fourth Quarter and Full Year

"While the ongoing global macroeconomic turmoil affected our results for the 2008 fourth quarter and full year, the underlying strength of Volcom is well intact," said Richard Woolcott, Volcom's chairman and chief executive officer. "In the face of this economic uncertainty, we are working to maintain a healthy balance between being aggressive when we see opportunities and pulling back where we can, including reducing our cost structure. We have a solid cash position and a strong global brand with a devout following. Further, we believe that our product line-up for 2009 is one of our best ever. We plan to approach the year with discipline, commitment and focus, and we remain confident in our ability to ride this period out and prevail as an even stronger company."

2009 Financial Outlook


Due to the uncertainty of the global economy and the lack of visibility into future business and market trends compared to that which has historically been available to the company, Volcom is currently suspending its practice of providing annual revenue and earnings guidance until such time when it has better clarity into its business.


patthe