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Peavey laying off workers during downsizing

September 26, 2014

MERIDIAN, Miss. (AP) — Meridian-based Peavey Electronics Corp. is reorganizing in a move that company officials say will result in some layoffs.

“Less than 100 employees will be affected,” Hartley Peavey, founder and CEO of Peavey Electronics Corporation, told The Meridian Star (http://bit.ly/1t2iGdX ).

“We’re keeping certain parts of that factory open; certain parts of it we’re closing down,” Peavey said about plans for the plant located on A Street in Meridian.

The last day for the plant’s employees is Nov. 25. Peavey said they will not be relocated to one of the company’s other facilities.

Peavey said the company will focus on U.S.-based manufacturing on Peavey’s premium products, and moving other manufacturing assets closer to its critical and emerging markets. He said the change also involves modernization of production methods and a renewed focus on engineering, sales and marketing.

“We operate in 136 countries. Our product mix has changed — instead of building great big speaker boxes; people are wanting little compact things,” Peavey said. “We just can’t ship big boxes around the world and be competitive. So we are downsizing our production of those kinds of things. Basically, most of the lower end of the product line has gone offshore, and the big stuff — the expensive stuff — we’re keeping in the United Sates.

Peavey is one of the largest manufacturers of musical instruments and professional sound equipment in the world. It holds more than 130 patents and produces more than 2,000 products, which are distributed throughout the United States and to 136 other countries.

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Information from: The Meridian Star, http://www.meridianstar.com

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