Orlando-based subsidiary Voxx Automotive Corp., the automotive division of consumer electronics manufacturer Voxx International Corp. (Nasdaq: VOXX), plans to lay off 54 Lake Nona workers.
Voxx International makes electronic products for vehicles, home theaters, security systems and more.
The workers will be laid off from its 115,000-square-foot headquarters and warehouse at 351 J. Lawson Blvd. in southeast Orlando's Lake Nona community, according to a June 29 notification to the state.
According to the letter, four full-time and 14 temporary workers will be terminated July 31 and the four full-time employees will receive 29 days of pay in lieu of a 60-day notice. The other 36 full-time employees will be terminated as of Aug. 31.
The letter pointed to the economic downturn and a decline in demand for the products produced, sold and distributed by Voxx as the reasons for the layoffs.
Company executives were not immediately available for comment.
Why this matters: Sometimes, laid-off workers can fit a need at other companies looking to hire skilled workers. The staff being terminated from Voxx includes a code/LED team lead, cutting-machine operator, director of engineering and business development, foam mold operator, 26 general assemblers, a help desk support specialist, industrial maintenance tech and two inspectors.
On May 15, Voxx reported that its automotive electronics segment net sales in its fiscal 2023 fourth quarter were $49.5 million, compared to $50.6 million in the year-ago period, a decrease of $1.1 million or 2.2%.
“From inflation, fears of recessions across the globe, the retail environment and ongoing supply chain constraints, we faced a myriad of roadblocks this year and our results came in lower than expected," said CEO Pat Lavelle said in a prepared statement. "We're anticipating continued softness in the global economy and at retail, though chip availability has improved which should positively impact our automotive business.
“Given the near-term market outlook, we continue to lower expenses and manage our capital prudently. We're optimistic for a rebound domestically as we move further into the year and with fewer supply-chain disruptions. Our view of the opportunities within each of our segments has not changed and we remain bullish on our future prospects when there is a return to a more normalized operating environment."
Company executives were not immediately available to comment on the layoffs. It's unknown how many employees will remain at the company's Lake Nona facility.
Voxx Automotive Co-Vice Chairman and President Beat Kahli is the firm's largest shareholder, investing through his Orlando-based Avalon Park Group. He owns 10.38M shares representing 44.76% of the company. Kahli was not immediately available for comment.
Other public companies also have announced job cuts in the region. For example, Menlo Park, California-based financial services company Robinhood Markets Inc. (Nasdaq: HOOD) announced plans to lay off dozens of Lake Mary workers on June 29.
Meanwhile, U.S. companies have announced plans to cut 417,500 jobs from January through May, up from 100,694 cuts announced in the same period during 2022. That's the highest January-May total since 2020, when there were 1.41 million cuts recorded according to Chicago-based Challenger, Gray & Christmas.
Staff Writer Ryan Lynch contributed to this article.
Sign up here for The Beat, Orlando Inno’s free newsletter. And be sure to follow us on LinkedIn, Facebook and Twitter.
