BMC refocuses on core business & sheds 40 jobs globally

BMC Group has announced significant steps to stabilise the company, refocusing on its core business with a leaner organisation, including the unfortunate loss of 40 jobs internationally.

The comprehensive strategic reorganisation comes in the face of “significant” economic challenges impacting the bicycle industry, which CIN readers will be familiar with.

BMC’s press statement explained: “Since the pandemic-related bicycle boom in 2022, market conditions have changed drastically throughout the bicycle industry. Due to the general decline in demand and gloomy consumer sentiment related to numerous uncertainties in the global economy, the industry is confronted with high inventories and is also exposed to increased price pressure.”

The Group said it took measures early one, adjusting supplier orders in 2023 (Editor’s note: There was plenty of evidence of a slowdown in 2023, particularly in the UK market with multiple company administrations), also reducing inventories. However, the measures taken so far have not been deemed sufficient: “In order to ensure sustainable competitiveness and put the company back on a healthy economic footing, additional cost-saving measures are required.

“The company deeply regrets these necessary steps. However, they are essential to secure the future. The BMC Group has initiated a consultation process with the potentially affected employees in Switzerland.”

BMC said it has confidence in its measures and is optimistic about the future. That core business is, BMC judges, to be road and gravel bikes, complemented by models in the areas of triathlon, MTB Cross-Country, e-road and track bicycles: “Thus, the most important performance categories in cycling are covered.”

“The internationally established BMC brand will emerge stronger from the situation as a result of the strategic reorganisation.”

Perhaps understandably, no new product launches are planned for the SCOR and Adicta Lab brands, however, the company will continue supporting riders, retailers and selling the existing range. “Market developments will be closely monitored and all options for the future of SCOR and Adicta Lab will be kept open.”

“The BMC Group is confident that the measures introduced will further stabilize the company and make it successful again. With a clear focus on its core business and a leaner organization, the company is well positioned to meet future challenges and take advantage of new growth opportunities.”