Makita USA is Cutting Jobs Company-Wide

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Makita USA is putting into effect a “company-wide reduction in force,” and has filed notices of mass layoffs with multiple states.

According to the public documents (linked-to below), a total of 213 employees will be affected by the layoffs.

The positions and job titles vary, and include service technicians, warehouse jobs, design and marketing jobs, sales jobs, territory managers, customer service representatives, retail sales reps, and others.

The company-wide layoffs affect a number of service centers around the country, 3 distribution centers, Makita USA’s corporate headquarters in La Mirada, California, a customer service office in Nevada, and an office and distribution center in Georgia.

According to the letter Makita USA issued to affected associates, copies of which have been provided to state governments, the layoffs are set to go in effect on June 28, 2023. Affected associates were notified on April 28, 2023.

There will be at least one facility closure. A notice provided to the state of Oregon describes the permanent closure of a Makita USA factory service center in that state.

We have not been able to learn whether the other service technician layoffs are also related to facility closures, as not all states’ WARN notices are publicly posted.

Makita USA’s top rivals in North America have also cut jobs this year. Milwaukee announced a closure in February and Stanley Black & Decker, Dewalt’s parent company, closed their Craftsman hand tool factory before its products appeared at stores.

It is unfortunate when any jobs are cut, and we hope for the best for everyone affected.

Affected Jobs by Location

Factory Service Centers in MA, NV, CA, OR, FL, TX: 31 jobs
Distribution Centers in CA, IL, TX: 51 jobs
California Corporate Office: 49 jobs + 19 jobs by out of state workers
Reno Distribution Center and Customer Service Office: 5 jobs
Georgia Distribution Center and offices: 22 jobs + 36 jobs by out of state workers

Total: 213

Learn More: Notice of Layoffs (PDF via Oregon Rapid Response Activity Tracking System)

Makita’s Business Performance for the Year Ending on March 31, 2023

Makita prices in the USA have increased in April 2022, October 2022, and most recently at the start of May 2023.

Makita’s notice to employees at their soon-to-be-closed service center in Oregon reads:

This notice is being provided to you to provide you with notice of layoff as a result of a Company-wide reorganization and reduction in force made necessary by the Company’s current financial condition.

We dug into Makita’s financial reporting to see if it could help explain this or shed light in “the company’s current financial condition.”

In their April 27, 2023 financial filing in Japan, Makita notes that “sales were sluggish in Europe and North America.” With respect to revenue:

In North America, while sales decreased as stay-at-home demand subsided and monetary tightening created wariness of a recession, [consolidated] revenue increased 6.1% year on year to 119,064 million yen due to the depreciation of the yen against local currencies.

For the year ending March 31, 2023, Makita’s North America segment reported total revenue of 125 billion yen (~$928 million), and a loss of 912 million yen (~$6.77 million).

For the same period, Makita reported total consolidated revenue of 765 billion yen (~$5.67 billion) and a total consolidated profit of 28.2 billion yen (~$209 million).

So while Makita reported a total profit for the year, their North America segment reported a loss.

Here is what Makita reported for their North America segment over the past 5 years:

FYE March 31, 2019: 267 million yen (~$1.98 million) PROFIT
FYE March 31, 2020: 201 million yen (~$1.49 million) LOSS
FYE March 31, 2021: 3,681 million yen (~$27.3 million) PROFIT
FYE March 31, 2022: 803 million yen (~$5.96 million) PROFIT
FYE March 31, 2023: 912 million yen (~$6.77 million) LOSS

All dollar amounts are converted using 5/5/23 rate of 134.80 yen to 1 USD.

Learn More: Makita 2022 Financial Results (PDF)

Makita USA has not issued any public statements about this matter.

Thank you Daniel for sharing this news with us.

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