AVIA CUTS BACK WORKFORCE BY 10%
In an effort to "streamline costs," Avia Group Int'l laid
off about 10% of its 225 employees companywide. Avia
spokesperson Carey Burns: "This is part of our long-term strategy
to remain efficient and focused." The cutbacks came as no
surprise to analysts who said Avia, a wholly-owned subsidiary of
Reebok, is following the philosophy of its parent company.
Reebok has been "pushing its divisions to trim overhead and
bolster margins." Jennifer Black Groves, an analyst at Black &
Co. in Portland, OR: "Avia has done a great job at improving
their sales, but their margins aren't as good as other divisions
in Reebok." Avia has undergone a "serious makeover in the past
two years, restructuring its management team and streamlining its
product" (Christine Gonzalez, Portland OREGONIAN, 4/13).