BRP announces additional measures to manage Covid-19 impact
Valcourt, Quebec, April 15, 2020 – BRP Inc. (TSX:DOO; NASDAQ:DOOO) has announced a series of additional measures in light of the COVID-19 pandemic. After slowing down and temporarily suspending manufacturing at all our powersports and marine operations sites around the world, we are taking additional actions, including cost-containment measures and changes in employee compensation to protect our financial flexibility and long-term growth.
“These are challenging and unpredictable times. We are taking all the necessary decisions to protect our employees, ensure BRP’s long-term growth and be ready to react quickly should the markets recover faster than expected,” commented José Boisjoli, President and CEO of BRP.
“We entered this crisis from a strong position, with significant market share and financially solid. And with key strengths to rely on: our product portfolio, geographic sales and manufacturing footprint. This, along with the talent and resilience of our people and our experienced management team, provides us with a solid base to navigate through this period of uncertainty,” concluded Boisjoli.
Changes in employee compensation
Following the slow down and temporary suspension of all our production lines worldwide and the temporary layoff of a majority of our hourly employees, certain measures have been put in place for office workers until further notice. Depending on the region and local regulations, they include:
- A global hiring freeze;
- Temporary layoffs and furlough for some employees;
- Reduced work schedule in some countries;
- Selected permanent layoffs.
In addition, until the end of the fiscal year:
- Salary of all Directors and Vice Presidents is reduced by 15%;
- Salary of most office employees is reduced by 10%;
- President and CEO, José Boisjoli, has decided to forgo his salary;
- All remunerated members of BRP’s Board of Directors have elected to forgo the cash portion of their compensation.
We will continue to work with local authorities to access government emergency relief measures and wage subsidy programs, where available, in order to mitigate the impact on our employees.
Other cost-containment measures
In addition to these efforts, we are taking further steps to maintain our financial flexibility, which includes the reduction of our operating expenses and the postponement of certain capital expenditures, investments and projects in order to protect our long-term growth plan.