HR Professional Teresa Senisi Helps Employees Through Gibson Layoffs
Gibson Guitar is best-known for their iconic electric and acoustic guitar models. Additionally, they produce other fretted instruments, such as mandolins and banjos.
According to reports, iconic guitar manufacturer Fender is facing financial pressures that threaten bankruptcy and is trying desperately to reduce overhead expenses to meet loan payments due this summer.
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Electric guitar maker Ibanez is in serious financial straits – they face bankruptcy unless they can pay off their $500 million debts by this week’s deadline, prompting staff reductions including 15 staff at their Nashville-based Custom Shop which boasts their popular Les Paul model.
Workers at Heritage are concerned that it has moved away from handcrafted musical instruments that made it famous, as well as from favoritism and stress from its management team. But Heliski said he understands these changes are intended to increase production and quality.
Gibson offers other products such as KRK and Cerwin Vega audio headphones, speakers and turntables, but these do not generate as many profits as its electric guitars do. Furthermore, Gibson provides recording equipment such as microphones and sound mixers.
Teresa Senisi is well-versed in HR’s dark days of layoffs. As an HR professional, Teresa understands how essential empathy and support are when helping terminated employees through this difficult transition period.
Gibson Brands, one of the iconic music makers in history, is facing a liquidity crisis with over $500 million of its debt coming due this summer. To reduce costs and ease its load, the company sold off Memphis factory and Cakewalk software before laying off 15 workers at its legendary Custom Shop.
But that may not be enough to save the company. Workers at Heritage Guitar, a former Gibson subsidiary founded in Kalamazoo, report managers shifting away from crafting handmade instruments that made Heritage famous – which could spell doom for this iconic brand.
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Gibson Guitar has long been recognized for their legendary, timeless models in every major fretted instrument style. Recently, its popularity has skyrocketed as more people appreciate music-making as a form of therapeutic and expressive therapy.
Gibson Guitar Company is proud to support Guitars for Vets, an organization dedicated to giving veterans new opportunities through music. Donated instruments and accessories from Gibson have enabled veterans of all ages to find healing through musical therapy; plus young musicians are given opportunities through its Gibson Gives initiative.
Gibson Guitar also maintains an exclusive Custom Shop dedicated to high-end guitars. When Gibson announced layoffs at this location, its CEO stated this as part of “an overall initiative to reduce operational overhead prior to refinancing plans,” but this won’t save them from bankruptcy.
Gibson Law has long been recognized for being one of the premier law firms to work at, yet this year they laid off many summer associates due to a lack of work, legal disputes and other issues.
Financial issues for this company have grown increasingly dire over time, as its debt has reached over $500 million and loan payoff deadlines approach in late July/early August. According to analysts, bankruptcy is almost certain without substantial cash infusion.
Gibson has already begun cutting overhead expenses, such as 15 employees at its Custom Shop this week. They recently also sold off Memphis plant and Cakewalk music software division in an attempt to make themselves more appealing as potential acquisition targets.
Gibson is a multimillionaire with his assets distributed among diverse investments. These include holding stakes in various professional sports teams (such as Cleveland Cavaliers) as well as real estate. Furthermore, Gibson has donated huge sums towards restoring Renaissance paintings while also showing support for social issues via donations to National Institute of Drug Abuse and El Mirador Basin Project to protect remaining rainforest in Central America.
Gibson is facing financial troubles as a result of its risky leveraged buyout strategy that saw them acquire consumer electronics brands such as Philips’ Woox accessories and Teac/TASCAM/Esoteric at great expense, banking on future growth to repay any loans used to purchase these entities.