Okay, let's dive into this JELD-WEN situation. The headline is that they're laying off 850 people across North America after a rough Q3. A $378 million net operating loss is never a good look, and that’s what they reported. You can dress it up with talk of "strategic reviews," but the numbers tell a different story.
The North American Downturn
The core problem seems to be in North America. Net revenues there were down almost 20%—19.4% to be precise—a $131.8 million decline. Meanwhile, their European operations actually saw a slight increase of $6.6 million. So, while they're launching a "strategic review" of the European business, the real fire is burning stateside. Why review the part that's not hemorrhaging money? It doesn't add up.
JELD-WEN CEO William Christensen is quoted as saying the third-quarter results were due to "persistent market headwinds and price-cost pressures," which sounds like corporate speak for inflation and tariffs. They estimate a $45 million annualized impact from tariffs. Fair enough, but is that really the whole story?
What I find genuinely puzzling is the timing of all this. Back in 2021, they opened a plant in Statesville, NC, with a $7 million investment and plans to hire 235 people. Fast forward to now, and Charlotte manufacturer to lay off 850 people companywide amid revenue slump they're slashing 850 jobs. That’s a complete reversal. It's like they built a house of cards and are now surprised it's collapsing.
And this isn't a one-off. There were layoffs in Iowa in November 2024 (152 people) and plant closures in California and Wisconsin earlier that year (affecting 450 jobs). This looks less like a strategic adjustment and more like a company slowly unraveling under pressure. How much of this is due to external factors (tariffs, market demand), and how much is internal mismanagement?
The "Strategic Review" Smokescreen
Now, about that "strategic review" of the European business. Christensen says it reflects the company’s "commitment to optimizing our portfolio and aligning resources to best support sustainable performance over time." (That’s a mouthful, isn't it?). But let's be real: "strategic review" is often code for "we're looking to sell." If the European business is performing well, as they claim, why not double down instead of exploring "opportunities to unlock additional value?" (Again, more corporate-speak).
The press release states JELD-WEN Europe accounted for $1.1 billion, or approximately 28 percent of their global revenue in 2024. That's a significant chunk of the pie. Selling it off would certainly provide a short-term cash injection, but what does it say about their long-term confidence in their global strategy? Are they streamlining, or are they retreating?
And here's the part of the data that really gets me: They say no assurances can be given regarding the outcome or timing of the review, and they don't intend to comment further unless required by law. Translation: "We're keeping our options open, and we're not going to tell you anything until we absolutely have to." Transparency isn’t exactly their strong suit here.
Is This a Fire Sale?
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