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Okay, JELD-WEN is doing a "strategic review" of its European business. Right. Let's be real: that's corporate speak for "we're trying to dump this thing before it sinks the whole damn ship."
The Numbers Don't Lie (and They're Screaming)
A $378 million net operating loss? Ouch. Laying off 850 people? Double ouch. And now they're "assessing a range of options" for their European division, which, by the way, is supposed to be a "leading designer, manufacturer, and distributor." If that's leading, I'd hate to see what losing looks like.
Let's translate some more corporate BS, shall we? CEO William J. Christensen says they're "optimizing our portfolio and aligning resources to best support sustainable performance over time." What he means is "we screwed up, and now we're desperately trying to stop the bleeding." Sustainable performance? Give me a break. This whole thing smells like a tire fire.
And the forward-looking statements? Don't even get me started. "Anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "plan," "possible," "potential," "predict," "project," "should," "target," "will," "would"—it's like they threw a dart at a board covered in buzzwords.
I swear, these companies think we're all idiots.
Europe: The Albatross Around Their Neck?
So, Europe accounts for 28% of their global revenue. That sounds like a big deal, right? But if you dig a little deeper, you see that their North American operations are where the real losses are happening. Down almost 20% in net revenues. Europe, on the other hand, increased slightly.
So why are they selling off the part that's not completely tanking?
Maybe they think it's a distraction. Maybe they need the cash. Or maybe -- and this is just a wild guess -- they see the writing on the wall and think Europe's about to go down the toilet too. I mean, with the economy the way it is...
And then there's the brands. BOS, DANA, Domoferm... who the hell has ever heard of these? Okay, Swedoor maybe rings a bell, but the rest? Sounds like a bunch of IKEA knockoffs.
Honestly, though, this reminds me of when I tried to sell my old car. I kept saying it had "character" and was "perfect for a first-time driver." The truth was, it was a rusted-out death trap that needed to be put out of its misery. Are they trying to sell a lemon here?
The Layoffs: Because People Are Just Numbers, Right?
850 people. Gone. Just like that. And they call it "optimizing." Charlotte manufacturer to lay off 850 people companywide amid revenue slump
It’s an 11% reduction in their North American and corporate workforce. Eleven percent of people’s lives, careers, and families just…poof. Disappeared to appease the gods of Wall Street.
And it's not even the first round of layoffs this year! Iowa, California, Wisconsin... it's a freaking bloodbath. I almost feel bad for them. Almost.
But then I remember the corporate doublespeak, the bonuses the executives probably still get, and the fact that they're probably already planning their next "strategic review" to justify even more cuts.
It ain't right.
So, What's the Real Story?
They're circling the drain. JELD-WEN is flailing, and this European "strategic review" is just a desperate attempt to stay afloat. Selling off a division, laying off hundreds... it's not a sign of strength; it's a sign of panic. Anyone buying what they're selling is going to get burned, offcourse.
