The boss of barbecue maker Weber will go and staff cuts could be on the way as demand for its products continues to drop.
The company has announced CEO Chris Scherzinger will leave the company after its shares fell approximately 13 percent on Monday, July 15.
The firm stated it is considering layoffs and other cost-cutting measures as a result of the fall.
More information is expected once it declares its fiscal third-quarter results on August 15.
Weber has selected CTO Alan Matula as temporary CEO, starting immediately, while it hunts for a permanent replacement.
Kelly Rainko, non-executive chair of Weber’s board said: “We are taking decisive action to better position Weber to navigate historic macroeconomic challenges, including inflationary and supply chain pressures that are impacting consumer confidence, spending patterns, and margins.”
The Palatine, Illinois-based firm also disclosed the suspension of its quarterly cash dividend and stated its commitment to working with lending partners to be in line with its credit facilities.
Preliminary results for the three-month period ended June 30 were also revealed, with net sales estimated to be between $525 million and $530 million.
Weber said reduced retail traffic affected its profitability combined with increasing inflation and other challenges weighed on customers.
It was also impacted by ongoing currency depreciation.
Further information about job cuts is expected to be shared with the fiscal third-quarter results on August 15.
The firm expects the challenges to continue into the fiscal fourth quarter and has withdrawn its fiscal 2022 estimate owing to market uncertainty.
Weber, which manufactures smokers, BBQ grills, and other outdoor cooking accessories, went public last year as families spent more time at home cooking and entertaining amid the Covid outbreak.
However, demand for its culinary equipment has recently slowed as customers reassess their spending habits in the face of rising prices and the greater chance of a recession.
Weber’s net sales declined seven percent in the quarter ended March 31, and its net loss was $51 million, compared with net income in the prior year period.
Scherzinger joins a growing number of CEOs who have left retail firms in recent months.
It includes Gap and Game Stop, as boards become dissatisfied with weak performance and supply chain interruptions among other issues.
Weber stock is down about 50 percent year to date, including Monday’s losses. It has a market capitalization of around $1.9 billion.