Tennant to cut 240 jobs

Tennant, which makes street sweepers and large floor cleaning machines, expects sales to drop 15 to 20 percent in the fourth quarter so it will offset the shortfall by cutting 8 percent of its staff by the first quarter.

“Demand for our equipment is weaker than projected and we do not see a quick recovery,” said Tennant CEO Chris Killingstad.

Tennant expects the job cuts to save $20 million a year. It will also take a $20 million charge, mostly in the fourth quarter, to cover severance costs and restructuring expenses. The company is terminating contractors, reducing production work schedules, and halting raises and its stock repurchase plan. It also trimmed its previous equipment-purchase estimate from about $25 million to $22 million.

From Star Tribune