Trex recently laid off at least 150 company-wide employees as the company prepares for a possible economic downturn.
Winchester-based Trex Company Inc., which makes composite decking alternatives to wood, has made the cuts proportional at the company’s campuses in Virginia and Nevada and other remote locations across the country, according to an e e-mail from James Reddish, with the Corporate Communications Division.
Reddish did not specify how many local positions were cut.
“Employees have been notified of this decision (August 25) and provided with details of the transition assistance offered by the company,” the email reads.
The decision comes after Trex had a positive second quarter that ended July 31, according to information presented on the company’s conference call. Trex has also posted year-to-date gains.
The conference call report states that while the company believes consumer demand for decking and railing products remained healthy, the company experienced a sudden reduction in one area of demand in June as its partners began to adjust their inventories to compensate for an economic slowdown.
“As a result, we expect a significant reduction in revenue in the second half of 2022 as consumer demand is met by existing channel inventories,” the conference call report said.
“Trex also plans to revise its 2022 capital expenditures from a range of $170 million to $180 million – down from our previous range of $200 million to $220 million – as the company is continuing with the first phase of construction of its new plant in Arkansas,” the report said.
Trex employs approximately 2,000 people company-wide. The action eliminates about 7.5% of Trex’s workforce.
The company said in its second-quarter earnings call on Aug. 8 that it continues to monitor broad changes in the economy and the effects on the business in particular, Reddish said in the email.
“Thursday was a tough day at Trex,” general manager Bryan Fairbanks said in an emailed statement. “Despite the tremendous growth of the past two years, our business is not immune to the reality of our current economy. We have an obligation to ensure that the business responds when we see changing market conditions… Great team members are leaving us and we know our actions are felt by the communities we serve. let’s call home. However, we strongly believe that this decision is necessary for the long-term success of the organization.
Trex is currently building a new global headquarters in Winchester along Crossover Boulevard and Interstate 81.