Forest City, Iowa-based Winnebago Industries will cut salaries and force employees to take a week off without pay as part of a bid to reduce expenses and save jobs, the company announced Thursday (Feb. 26).
The Des Moines Register reported that most salaried employees will see their pay reduced by 3% beginning March 1, according to documents filed with the U.S. Securities Exchange Commission. Vice presidents will lose 10% of their paychecks. Chairman and Chief Executive Bob Olson, who received a pay package worth $731,370 in fiscal 2008, will receive a 20% salary cut, the company said.
A Winnebago spokeswoman said workers also must take a weeklong “unpaid leave of absence” in the company’s fiscal fourth quarter, with most taking June 29 to July 3.
The motorhome maker lost $9.6 million, or 33 cents per share, in the quarter that ended Nov. 29, down from a profit of $10 million during the same period the year before. The company has been stung by the general economic pain, last summer’s high gas prices and credit tightening.
Winnebago said in December that it reduced its work force by 12%, to 1,700 employees, during the last three months of 2008.