OtterBox Layoffs 2023: why they cut their staff?
In Fort Collins, Otter Products suffered an undisclosed round of layoffs in January 2023. The company is following a nationwide trend that has affected high-tech enterprises. As part of an organizational restructuring, this smartphone case company also fired an undetermined number of employees in 2016!
Based in Fort Collins, Colorado, OtterBox is a privately held manufacturer of accessories for electronic devices. It makes cases for mobile devices that are drop-, shock-, and water-resistant.
In recent years, the workplace has seen significant change. This is also influencing people’s preferences for their jobs. The rise of layoffs has been the most striking change. Large tech organizations throughout the world are downsizing their staff by firing people. This is done for a variety of reasons in many sectors. Employees’ lives are being greatly affected by layoffs in 2023. In this article, we will explore the layoffs at Otterbox.
About the company
Otter Products LLC produces the incredibly well-known Otterbox smartphone case. They are the best-selling protective cases in the US and Canada. Their products are known for being the most robust on the market for touch-screen wireless devices. Curt Richardson created the business in 1998. He and his family are the owners.
Richardson first had the concept for the product when researching waterproof cases. After noticing a rise in the popularity of water activities, Curt Richardson created his first “OtterBox,” a totally water-resistant box, in his garage in 1991. Later, his wife gave it the title of Otterbox. Since then, OtterBox has created protective cases for both water- and non-water-resistant smartphones. In 1998, Richardson launched his business after perfecting the Otterbox design.
The business started making iPod cases in 2001, and they were first made available in 2004. OtterBox stopped making iPod cases 2010 to concentrate on mobile technology and gadgets. The business offers military-grade accessories for protecting methods on the front lines as of 2012.
Early in 2009, OtterBox employed around 70 people. To service the European, Middle Eastern, and African markets, the company built an office in Cork, Ireland, with ten workers in 2010. It established a sales office in Dubai shortly after opening a larger one in Hong Kong in 2011. OtterBox employed 363 people in 2012.
Curt Richardson announced that he would leave his CEO post and move into chairmanship in July 2012.
On May 22, 2013, OtterBox acquired San Diego-based LifeProof, a maker of cases for tablets and smartphones. In 2011, revenue for OtterBox totaled $347.5 million.
With 57.5% of its workforce hailing from Colorado State University, Otter Products is an established company. It values hiring graduates from this institution. Otter Products is recognized as one of Fort Collins, Colorado’s Best Companies to Work for. It has made a name for itself as a fantastic place to work in Colorado. Otter Products is a medium-sized manufacturer with $650.0 million in annual revenue.
Kurt and Nancy Richardson’s son, JC, assumed control of Otter Products as CEO in December 2022. After serving on the board, he assumed the position.
OtterBox’s layoffs
Otter Products, a manufacturer of smartphone cases, let go of an undetermined number of employees in 2016. On February 24, 2016, the business acknowledged that it was carried out as part of an organizational reform.
In July 2015, “a small number of jobs” were also lost at the OtterBox protective case manufacturer. At its location in Fort Collins, Otter Products employed 600 people as of December 2015. thus making it one of the biggest employers in the area.
According to spokeswoman Kristen Tatti, Otter Products “will be a significant and active employer in the Northern Colorado community.” We don’t disclose particular figures due to changes to the company’s organizational structure, as we have in the past.
On February 23, 2016, the business finished its internal reorganization. It was partially motivated by rivalries among producers of tablet and smartphone cases.
“As pioneers in this industry, we monitor market conditions and respond appropriately. Otter Products restructured various departments. This has led to removing some posts to keep us agile and one step ahead of the competition.” The business stated this in a statement.
“Adaptability is and has always been a key factor in what has made Otter Products a leader in the marketplace. Also, we must keep delivering the high-quality products that our clients and consumers have come to expect from our brand.”
At the time of the layoffs, the Colorado Department of Labor and Employment had not received a Worker Adjustment and Reemployment Notification, or WARN, from Otter Products. These notifications notify the state of widespread layoffs, which often affect 50 or more full-time employees.
The new program from OtterBox
OtterBox introduced a new initiative on August 8, 2022, to provide our device’s screen with an extra degree of security. If our device’s screen cracks while Amplify or Alpha Glass is installed, this new application allows phone screen repair and screen protector replacement.
OtterBox CEO Jim Parke remarked, “We realize a shattered phone screen may be more than a minor setback. Keep in touch with the people, places, and moments that matter most with OtterBox. The OtterBox Protection policy extends the coverage of your case and screen protector to your device’s screen, which is already covered by our extensive limited lifetime warranty policy.”
Otter Products lays off workers in 2023
Otter Products had an undetermined round of layoffs in mid-January 2023. Thus, the business continues a nationwide pattern that has affected high-tech businesses. The parent corporation of OtterBox creates protective cases, accessories for smartphones and tablets, and outdoor products. It revealed that certain of its operations had been restructured. This led to a reduction in staff, according to company spokesperson Kristin Tatti. The company did not disclose the number of employees who were let go.
Tatti wrote in an email to the Coloradoan, “The structure and employee decrease is a response to ongoing problems with macroeconomic conditions.
According to her, the reductions affected both remote workers and those based in Colorado and San Diego. But the layoffs weren’t targeted at any particular locations. Thus, Otter Products is the most recent high-tech company to downsize its personnel.
After going on a hiring spree in the first two years of the epidemic, major corporations like Amazon and Meta changed their hiring strategies in 2022. Layoffs.fyi is a website monitoring tech layoffs since March 2020. According to it, at least 154,000 layoffs at more than 1,000 tech companies last year.
Over 26,000 layoffs have been reported so far this year. According to the website’s estimates, this is probably an undercount.
Conclusion
OtterBox develops innovative products that enable connection. From their modest beginnings in a garage in Fort Collins, Colorado, they have grown to become the top-selling smartphone case brand in the United States. They grew by utilizing more than 20 years of experience.
Additionally, they have added screen protection, power accessories, and business-to-business solutions to their catalog of goods.
The intention to help others lies at the heart of every OtterBox innovation. Through the OtterCares Foundation, they fund initiatives. It will encourage kids to become creators, entrepreneurs, and philanthropists.
