Pella Corporation

Pella Corporation is expecting to scale back its workforce, according to an announcement made on Nov. 20.

The statement says the company has evaluated its current costs, including labor costs, and has decided to restructure. They are offering voluntary retirement incentives for eligible team members, elimination of some open positions and involuntary separation for a small portion of salaried and office non-exempt positions. The company says these reductions will not impact production team members.

Team members impacted by involuntary separation will have access to outplacement services and will receive a transition package from Pella. The company anticipates that involuntary separation will impact about 1 percent of their total team members across the organization nationwide.

“We’re committed to remaining a vital member of the communities in which we operate and a strong leader in our category,” the statement from the company said. “We believe these internal changes are necessary in assuring that we are a thriving, people-focused company for years to come.”

The change comes after the company says they’ve experienced significant growth in business, but at the same time, the window and door industry has experienced unprecedented changes with consolidation occurring amongst competitors.

This allows competitors to gain scale and improve their competitive positioning in the marketplace. Additionally, consumer demand continues to drive a shift in product mix towards vinyl. Because of this, the company says they must adapt to this changing landscape to remain competitive.

A statement from President and CEO Tim Yaggi:

“Cost reduction decisions are difficult yet necessary for our long-term sustainability. No decisions were taken lightly. Significant care and thought went into each one. We believe these changes are necessary for us to effectively and profitably compete in a rapidly changing environment and for our company to be viable into the future.”

A statement from Karin Peterson, human resources vice president:

“Caring for our team members is at the heart of every decision we make at Pella, and we take these decisions very seriously. Changes in our organizational structure are necessary steps in assuring that we are a thriving, people-focused company into the future.”

Emily Hawk can be reached at ehawk@pellachronicle.com or by calling the newsroom at 641-628-3882.

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