LoJack Lays Off 46 Employees

Westwood-based LoJack Corporation recently completed a staff reduction, as part of a "strategic restructuring" of the company's operations. The international corporation, which has operated its headquarters off of High Street for the past seven years, is a leader in the design of stolen vehicle recovery systems.

The workforce reductions, scheduled for the second quarter of 2010, have been completed, Vice President Paul McMahon said in an interview with Westwood Patch. Of the 46 employees laid off, approximately half worked at LoJack's Westwood headquarters. The rest were members of the corporation's field sales staff.

The restructuring and subsequent layoffs were part of an effort to "maintain and strengthen the company's position in the marketplace," the company said in a press release. LoJack officials hope that the restructuring will save $6.8 million annually, beginning next year.

"We regret the hardship that this restructuring will have on affected employees but believe these actions position us well to meet the changing dynamics of the automobile marketplace," LoJack Chairman and CEO Richard T. Riley said in a statement.

The reduction in staff has not provoked a strong response from the company's employees, McMahon stated. "Employees — historically, at LoJack, and particularly in this event — are and were treated with dignity. And that always goes a long way."

The restructuring was a long time coming, McMahon said.

"For well over a year now, we've been looking at our business and looking at the marketplaces where we do business in the overall economy," he said.

And what they saw wasn't encouraging. Since the beginning of the recession, McMahon noted, automobile sales have dropped off dramatically.

Still, he cautioned that the corporation's decision wasn't solely in response to the poor economy. "The action we took in the last week was not in reaction to what's going on now," he said. "It was more strategic in nature than (a) tactical reaction." 

The corporation may also be looking to hire new employees as part of the same restructuring that cost some their jobs.

"New skill sets and roles will be filled," McMahon said. "There will be new positions added in the future."

The functions that these new employees will perform, however, has not yet been announced.

Riley expects that with the restructuring and the "encouraging" stabilization in the global automobile market, the corporation will end the year in the black.

"We continue to expect a moderate year over year increase in revenue, modest profit, positive operating cash flow and healthy margins for 2010," he said. "Our revenue growth will be gradual and will be concentrated in the second half of the year."