New plans revealed by Revelyst, the division of Vista Outdoor that includes Simms Fishing Products, will result in office closures and job losses.
The sweeping changes are expected to realise an estimated $100 million in annual cost savings by 2027. This is in addition to the previously announced $50 million costs restructuring programme, of which $25 million was specifically related to Revelyst.
The plans were announced in an update on Revelyst’s GEAR Up transformation, first announced in its fiscal third quarter, which will result in it becoming a standalone company later this year.
The objectives of GEAR Up are to simplify the business model, deliver increased efficiency and profitability from the new structure and reinvest in those brands with the highest potential to accelerate growth.
The process will involve directing resources to better meet customer demand, prioritising supply chain strengths and doubling efforts on the equity and innovation of its brands. New cross-brand roles will be created where the company identifies synergies across platforms, teams will be brought together at dedicated platform locations and duplicated roles will be eliminated.
As part of these measures, the company will close offices in Petaluma, California; Overland Park, Kansas; Eagle, Colorado and Madison, Mississippi. Teams will be consolidated across core locations including: The Adventure Sports platform, led by Jeff McGuane, in Irvine, California; The Outdoor Performance platform, led by Jordan Judd, in Bozeman, Montana and The Precision Sports and Technology platform, led by Jon Watters and Scott Werbelow in San Diego.
Simms Fishing Products, acquired by Vista in in 18 months ago, is part of the Outdoor Performance platform.
“Our business is stable but headwinds exist and we need to make changes to grow and meet our financial plans,” said Eric Nyman, CEO of Revelyst. “The decisions to close offices and reduce headcount are not taken lightly. They are intended to position us for the future but we understand they are difficult in the immediate.
“I have incredible confidence in our ability to transition through this and gain strength because of it. GEAR Up is integral to transforming Revelyst into the world’s number one house of brands.”