Swiss bicycle manufacturer BMC has asked the Solothurn region (Switzerland) for a “temporary reduction in work”, according to information from local news outlet Grechner Tagblatt. This measure is due to the difficult economic situation in the bicycle retail sector and the industry in general, which continues to affect brands of all sizes.
Understand the “temporary reduction of work”
Temporary work reduction allows a company to reduce the work hours of full-time employees during slow periods with the goal of avoiding layoffs. The Swiss region where the company is based authorizes reimbursing employees up to 80% of the value of wages temporarily lost due to reduced working hours.
BMC anticipates the crisis
“The company’s board of directors and management adapted to this situation in a timely manner and took appropriate preventive measures and made necessary adjustments,” said BMC CEO David Zurcher, as cited by Grenchner Tagblatt.
Exit from the WorldTour
BMC’s most visible cost-cutting measure in recent months has been the exit of the WorldTour peloton in 2024. In the past, the brand has sponsored several WorldTour teams. BMC, however, is sponsoring the Swiss Tudor Pro Cycling team, which has secured a number of wildcard places in this year’s major races, including the Giro d’Italia.
Short-time work can be introduced by a company after approval from the local canton. Once the request is approved, the local government pays the company the amount of 80% of the employees’ payroll, preventing the affected company from having to make layoffs.