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Home » Purcell cuts 28 workers, rehires 10

Purcell cuts 28 workers, rehires 10

Outdoor cabinet maker saw sales slump to end year, rebound last month

February 12, 2009
David Cole

Purcell Systems Inc., a maker of outdoor cabinets and enclosures for telecommunications equipment, laid off 28 people early last month, but since has brought back 10 of those employees on a temporary basis, says CEO Pete Chase.

The layoff decision was made after a difficult fourth quarter of sales and with the expectation that the first quarter would be slow as well, Chase says.

The year started out with "fantastic" sales results, though, which led to the move to bring back 10 employees, at least temporarily, he says.

"We hit the numbers we were shooting for in our budget," he says.

All 28 people who were laid off worked at Purcell's facility here at 16125 E. Euclid, and were mostly manufacturing workers, says Chase, who helped found the company.

Pent-up demand from the fourth quarter contributed to the company's success early this year, he says.

The company now has a total of 150 employees, its mid-2007 level, with 120 here and the rest at operations in Sweden and Poland, he says. It also has about 10 to 15 temporary employees, he says, down from about 50 to 60 in January 2008. The reduction in temporary employees is due in part to increased plant automation, and the hiring of more permanent employees.

Despite the late-year swoon, Purcell is "doing great" overall, with about 44 percent revenue growth in 2008, Chase says.

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