Major Retailer Cuts Emerson Microwaves, Compact Refrigerators

Emerson has reduced staffing levels at its offices in the U.S. and China following the announcement that a major retail customer will no longer carry Emerson-branded microwaves and compact refrigerators.

In a recent 8-K filing with the Securities and Exchange Commission, Emerson said it would be eliminating six positions in its Hackensack, NJ, office and four positions in its Hong Kong office. The reductions account for about 23% of the company’s global workforce.

Also, Emerson said in the SEC filing that Funai Corporation has provided written notice to terminate its licensing agreement with Emerson, effective December 31.

Emerson officials in the SEC filing said the company is analyzing the impacts of these events to its business and is identifying strategic courses of action for consideration, including seeking new licensing relationships.

While the company did not reveal which retailer would be eliminating its microwaves and compact refrigerators, Target and Walmart are the company’s two largest customers accounting for a lion’s share of Emerson’s total sales, according to its most recent 10-K filing.

In fiscal year 2015, total company sales were $69 million. According to the company, microwave ovens and compact refrigerators accounted for 93% of Emerson’s gross product sales for fiscal year 2015.