‘Supply chain disruptions.’ Fort Valley’s Blue Bird lays off more than 100 workers
On the heels of reporting a $12.1 million loss in its fiscal second quarter, Blue Bird Corporation laid off 115 production workers at its Fort Valley manufacturing facility.
The school bus manufacturer attributed Tuesday’s “limited workforce reduction” to continued “supply chain disruptions that have been exacerbated by Russia’s war in Ukraine and the lingering COVID-19 pandemic,” according to a company statement.
The layoff represents less than 6% of Blue Bird’s total workforce, according to the statement.
“Blue Bird does not anticipate any additional workforce reductions at this time,” the statement reads. “Affected production workers could be eligible for rehire once the economic conditions improve.”
Last Thursday, Blue Bird Corporation had a loss of 38 cents on a per share basis, The Associated Press reported. Losses, adjusted for non-recurring costs and stock option expense, were 31 cents per share. The company posted revenue of $207.7 million in its fiscal second quarter.
Monday, the company announced it had implemented a 10% price increase on all model school buses.
The price increase, which took effect May 10, was “to offset record inflationary pressures and substantially higher costs for raw materials, transportation and labor,” according to a news released posted on the company website.
The company also cited supply chain disruptions made worse by Russia’s war in Ukraine and the lingering pandemic.
“We maintain a relentless focus on process improvement every day to optimize our cost structure, production throughput, and operations,” Matthew Stevenson, president and CEO of Blue Bird Corporation, said in the release.
“Despite the significant progress we have made so far, we are now forced to pass on these unprecedented cost increases to the market. It is a necessary step to continue supplying best-in-class school buses, parts and related services to our valued customers in the student transportation industry.”
Blue Bird is Peach County’s largest employer, with an estimated 2,400 employees, according to the Development Authority of Peach County.
This story was originally published May 18, 2022 at 11:51 AM.