FOR IMMEDIATE RELEASE
Roll Out Tire to lay off 700 employees
CEO cites financial trouble
PROVIDENCE, RI, (October 8, 2015) – CEO of Roll Out Tire, Alissa McGeehan, has announced the lay off of 700 employees from Roll Out Tire. The announcement was made yesterday at a board meeting held at their Bristol, RI headquarters.
Company layoffs will take effect on October 30, 2015. Workers were notified during individual meetings with management yesterday.
Roll Out Tire CEO, Alissa McGeehan, cited loss in revenue, loss of customers, and increased price in raw materials for the layoffs.
The company is experiencing a severe loss in revenue. CEO Alissa McGeehan noted that Roll Out Tire’s revenue declined by 50% this year. “We have sold only 10,000 tires in 2015 compared to 20,000 in 2014,” says CEO, Alissa McGeehan. Additionally, she stated that Roll Out Tire’s revenue plunged from $1 million in 2014 to $500,000 this year. Roll Out Tire is compensating for the loss by laying-off the majority of their employees.
After three tire-manufacturing companies opened in the Bristol area, Roll Out Tire has also suffered a dramatic loss in customers. Vice President of the company, Paul Smith, noted that these new tire manufacturers have increased competition in the Rhode Island tire industry. Out of the 250 companies that had contracts with Roll Out Tire in 2014 only 100 renewed them in 2015. Unfortunately, the loss in customers has greatly contributed to the company’s loss in revenue.
Roll Out Tire is also feeling the impact due to the high cost of raw materials and factory parts. The Operation Manger, Connor Jones, stated that the cost of these materials and parts, such as rubber and metal, have increased to $50,000 compared to $25,000 in 2014. He elaborated by saying that times were tough for the company, especially with the shortage of rubber and the increasing demand for it. Unfortunately, the layoffs will help the company “make up for the increased cost of materials” in order for them to produce their tires.
McGeehan explained that it is with careful consideration and deep regret that Roll Out Tire has taken the necessary steps to lay off valued employees.
Roll Out Tire’s Human Resource Department will be staging a series of seminars that will prepare its employees for the transition from the company. The seminars will take place on October 12th in Conference Room A of their Bristol, RI headquarters. The employees will receive information on severance packages, employee benefits and psychological counseling.
The tire company expects to rehire workers when the company’s economic situation allows.
About Roll Out Tire
Rhode Island’s valued tire company, Roll Out Tire, opened its doors in 2000. Their company manufactures premium tires for the New England area, priding themselves with durable and lasting tires.
For more information please contact Jillian Bowen, Public Relations Director at Roll Out Tire, at 401-234-5678 or email@example.com.