Coby’s Troetti: “We Were way Over-Assorted"
Coby Electronics’ restructuring - including the layoffs of 42 employees or 35 percent of its U.S. staff – followed a “tough” first quarter that saw a sharp decrease in the sale of “legacy” products, such as DVD players and radios, Michael Troetti, company president, told Dealerscope.
“We stayed in legacy categories that other companies would give up (such as DVD players, radios and radio/cassette players),” he said. “And those categories lose their momentum as you have convergence with tablets and smartphones that offer alternatives for video, audio and camcorders.”
Coby will still manufacture products in those legacy categories but will greatly decrease the number of SKUs in each of them. “We were way over assorted on those product lines,” he said. Going forward, the company will focus on tablets, headphones, soundbars and Bluetooth speakers. Coby will continue to produce TVs in 19 to 36-inch screen sizes.
Among those laid off were Jodi Sally, vice president of marketing, and Michael Paladino, senior product marketing manager. Troetti said Coby is not currently looking to fill those positions. The company also shut down its warehouse in Savannah, Ga., which employed 10 people who mainly handled shipping and returns. Coby’s second warehouse, in Carson, Calif., will remain open. No more layoffs are expected.