A Southern California company shocks with unexpected layoffs announcement

Photo byChristian ErfurtonUnsplash

Southern California's Boardriders, a conglomerate of surfwear brands now owned by Authentic Brands Group, has announced a significant reduction in its workforce, detailed in a recent Worker Adjustment and Retraining Notification (WARN) notice filed with the California Employment Development Department. The notice outlines a phased layoff plan set to take place from February 4 to April 26, affecting at least 590 employees across various locations.

A substantial portion of these layoffs, involving 474 employees, will occur at Boardriders' large distribution center in Mira Loma, California, situated nearly 50 miles east of Los Angeles. Additional layoffs are expected at the company's headquarters in Huntington Beach, California, a city known for its strong surf culture. This move follows a September reduction that saw 84 senior positions eliminated, including several C-suite roles and key design directors from Boardriders' portfolio brands such as Quiksilver, Billabong, and Roxy.

The WARN notice comes in the wake of Authentic Brands Group's acquisition of Boardriders Inc. in September for an estimated $1.25 billion. This acquisition included renowned surf-oriented labels like Quiksilver, Billabong, Roxy, and others, marking a significant expansion of Authentic's brand management portfolio, which aims to revitalize struggling brands with strong name recognition.

The decision to reduce Boardriders' workforce and negotiate cost-cutting contracts, including with its team of athlete ambassadors, reflects a broader strategy to streamline operations and reduce reliance on a large distribution network. Authentic's approach to managing its brands involves licensing out production and sales, reducing the need for in-house design and distribution facilities.

As Boardriders navigates through these changes, affected employees are facing uncertain futures, with significant layoffs on the horizon. The company has yet to publicly address the reasons behind the dismissals or the impact on its long-term operations. The surfwear industry, particularly in Southern California, watches closely as one of its major players undergoes this substantial transformation.