Ruger Continues Downsizing Workforce As Demand For Guns Declines
Demand for firearms in the U.S. has softened, leading gun manufacturer Sturm, Ruger & Co. to continue reducing its workforce, dropping 25 percent of its workers in New Hampshire, according to New Hampshire Business Review.
Ruger told the publication that “the company has 700 employees at its Newport facility – 239, or 25%, fewer than a year ago.” Its workforce is down nationally as well, NHBR reported, with 1,600 fewer employees across its facilities.
Gun sales typically would be expected to increase as a presidential election nears, inspired by fears over new gun control laws, but firearms enthusiasts are bucking that trend this year.
It remains unclear precisely why sales are down, but NHBR said “those fears have either subsided, there has been a shift in public opinion or the market is simply saturated.”
Unlike its competitors, Ruger opted against aggressive discounting to help boost sales.
“Demand has remained soft throughout this year. However, we once again elected to forgo opportunities to generate better short-term results with overly aggressive discounting and promotions and the extension of payment terms, which would hinder our long term performance, value, and brand,” said CEO Christopher J. Killoy in the company’s earning release. “Instead, we took the fiscally prudent measure of reducing production for the third consecutive quarter to moderate inventory levels in our warehouses and in the distribution channel.”