What can consumers expect from the layoff at the Fender factory in Corona California

Discussion in 'Miscellaneous [BG]' started by Cory rich40, Aug 5, 2022.


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  1. Cory rich40

    Cory rich40

    Apr 10, 2021
    I saw on google where Fender was laying off 300 employees at their corona factory, and from what I read some of those are high positions. Do you think this will effect anything with us consumers, or is this a normal thing with fender just now being reported by the news. I feel bad for the employees too. I thought fender was doing really well, at least during the lockdowns. Could it be that inflation is already affecting things for fender?
     
  2. bassGtar

    bassGtar Supporting Member

    Jul 29, 2009
    CT
    I heard that Fender has economic research that indicates a high percentage of TBers are about to file for personal bankruptcy and they want to get their cost structure in line with the anticipated drop in demand before it occurs. :roflmao:
     
  3. Might be continuing supply chain issues? IDK. But the corporate world seems to have an -affinity- for laying off when things seem good. Maybe that's when they feel most safe in testing how much they can cut the workforce before it starts causing them to trend the wrong way.
     
  4. marchone

    marchone Since 1951 Supporting Member

    Nov 30, 2009
    NYC
    One result reported is 200-250 fewer guitars made in Corona per day. A commensurate percentage may be basses.

    EDIT for correction.
     
    Last edited: Aug 5, 2022
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  5. DCGuy

    DCGuy

    Apr 12, 2016
    Washington DC, USA
    One might think demand for US made instruments is falling. I have no data on this though.
     
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  6. Cave Puppy

    Cave Puppy "Humph Bo, he's wond!" - John Lennon

    Jan 13, 2015
    creamyj.bandcamp.com
    I heard that the layoffs are due to a huge glut of unsold overseas made instruments and poor QC in Corona (like 50% have to go through QC again). It sounds a tad complicated to me. Check out Dylan Talks Tone on YouTube. Regardless - it’s bad for the folks that got laid off. We may see better QC from Corona as a result but it will be a while before I get a new Fender. In fact, I want to return my Squier CV ‘60s bass I recently got on sale. It was that cheap because of this situation. I don’t want to be a part of that.
     
  7. JRA

    JRA my words = opinion Supporting Member

    higher prices! :laugh:
     
  8. BeeTL

    BeeTL Commercial User

    Sep 26, 2006
    Oldsmar, FL
    Brad Lowe, Lowe Custom Guitars
    There was a thread on this news yesterday that was locked for some reason. What I can say is that I know folks who are impacted and the whole situation makes me sad.

    Here's the primary source and I will say that I've had the opportunity to confirm the major details independently through three different individuals:

    Fender reportedly lays off hundreds of California employees
     
    Last edited: Aug 5, 2022
  9. Spidey2112

    Spidey2112

    Aug 3, 2016
    I'm thinking the price of shell pink will bottom out, to the point they won't be able to blame it on the tide, anymore.
     
  10. DirtDog

    DirtDog

    Jun 7, 2002
    The Deep North
    ….with a commensurate increase in the price of sea foam, hopefully.
     
  11. fnp5150

    fnp5150

    Sep 18, 2017
    Valdosta,GA
    Could be a trickle down effect from the high cost of simply “existing” in California. Living in a southern state, it seems every week I see another company has relocated here from states where it is more expensive to manufacture, examples like Kimber, Remington, Nissan, Mercedes, etc. It’s not just companies, but entire families as well. Maybe a move is on the horizon.
     
  12. Cave Puppy

    Cave Puppy "Humph Bo, he's wond!" - John Lennon

    Jan 13, 2015
    creamyj.bandcamp.com
    I haven’t heard that in any of the reporting I’ve seen. I highly doubt Fender will ever move from California.
     
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  13. Michedelic

    Michedelic MId-Century Modern

    Just remember, we’ve already been here, it did not go well…
    Fender Lays off Hundreds of Employees
     
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  14. Cave Puppy

    Cave Puppy "Humph Bo, he's wond!" - John Lennon

    Jan 13, 2015
    creamyj.bandcamp.com
    “Just spoke with someone “in the know”
    It’s got nothing to do with an anti business climate. They’ve been in business in CA for literally decades as an internationally established brand. It’s likely due to unsold overseas inventory and loans on those instruments due. The layoffs cover the debt.” This is from another thread on here about this topic.
     
  15. This sucks for the employees. I hope they find new work quickly.

    That said, it's been evident in the MI industry for decades that the quality floor continues to be raised on budget instruments. If imports and ultra high end are where the sales are, then that's where you put resources.
     
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  16. lowfreqgeek

    lowfreqgeek

    Mar 15, 2010
    Tijeras, NM
    Unrelated to Fender, but I live along I-40 in NM and drive it daily. I can't tell you how many California cars I've seen in caravan with U-hauls and/or loaded down utility trailers traveling East on I-40. It's pretty much a daily occurrence.
     
  17. Burwabit

    Burwabit Likes guitars that tune good and firm feelin women Supporting Member

    Apr 4, 2011
    Lubbock, TX
    My guess is they're either moving out of Cali or making the books look better for a future sale of the company
     
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  18. Smooth_bass88

    Smooth_bass88 vaxx!

    Oct 31, 2006
    North AMERICA, USA
    Maybe some marketplace/finance/
    economists can chime in here?
     
  19. Michedelic

    Michedelic MId-Century Modern

    Did everyone forget that they moved to Arizona for a while, and that the company was in deep crisis in the early/mid-80’s, almost disappearing?
     
  20. I suspect it has a lot more to do with the looming recession. I know "mainstream" doesn't want to talk about it, but buckle up, big tech companies are starting to lay off hundreds as well. It isn't in the news yet, but the movement is happening. I'd brace yourselves, 2008 is coming.
     

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