New York, NY (September 29, 2014)—Peavey Electronics has begun an extensive global reorganization. The MI and Pro Audio manufacturer, marking its 50th anniversary next year, is now reassessing—and in some cases, downsizing—its assets, from manufacturing to distribution to service. Among the first changes, the company announced it will layoff upwards of 100 factory employees at one of its hometown facilities in Meridian, MS on November 25. Changes will also be seen overseas, as the company is shuttering its UK distribution center as well.
The company released a statement in late September noting “The reorganization includes focusing US-based manufacturing on Peavey’s premium products, and moving other manufacturing assets closer to its critical and emerging markets.” Company founder and CEO Hartley Peavey clarified that position to local newspaper The Meridian Star, stating, “We operate in 136 countries. Our product mix has changed; instead of building great big speaker boxes, people are wanting little compact things. We just can't ship big boxes around the world and be competitive. So we are downsizing our production of those kinds of things. Basically, most of the lower end of the product line has gone off-shore, and the big stuff—the expensive stuff—we're keeping in the United Sates.”
To that extent, the company will be making changes at its headquarters. The manufacturing that remains in Meridian will focus on products like Peavey’s best-known pro audio offering, MediaMatrix digital audio distribution systems, and MI efforts like Composite Acoustics guitars. Meridian will also retain non-manufacturing functions at its headquarters, like product development, engineering, sales, marketing, accounting, tech support and service.
Underlining the fact that the reorganization is worldwide, Peavey noted in its statement that “global product training, service and support is expanding,” pointing to recent service and training center additions in Brazil and Singapore.
Elsewhere overseas, Peavey will close its UK distribution facility in an effort to reduce costs and restructure its overseas operations. Originally created to help minimize international shipping costs by creating a European base for the company, the gradual shift to manufacturing in Asia made the UK facility largely redundant. A total of 32 employees work at the distribution facility; no word was given if they will be reassigned.
Peavey’s European marketing manager Andy Rust told Pro Sound News Europe that the Peavey digital R&D hub in Oxford, UK, which develops Commercial Audio lines such as MediaMatrix, will remain open, and that the Peavey Italia manufacturing and design center is “untouched at present.”
Peavey • peavey.com