About 100 salaried and office workers at Toro Co. are losing their jobs as the manufacturer responds to the recession that is hurting businesses throughout the United States.
Three-fourths of the job cuts occurred Wednesday at the company's Bloomington headquarters.
"We didn't want to get to this point," said John Wright, director of investor relations. He explained that Toro left jobs unfilled and accepted about 50 voluntary retirements before issuing layoff notices Wednesday.
Pay increases for remaining salaried and office workers have been suspended through October. In another aspect of the "share the pain" actions, Wright said, Toro's officers will take immediate 10 percent pay cuts.
Toro, with a product line that includes landscape maintenance equipment, produced net income of $119.7 million on $1.88 billion in revenue for fiscal 2008.
The company estimated that sales will decrease 5 percent for the year that ends in October. Salaried and office workers also will be expected to take four furlough days over the next several months to reduce payroll costs.
Toro has about 3,400 production workers. Wright said that plants' workforces have been managed to match market demand for products.