The US sunglass manufacturer Oakley Inc. said last week that it had cancelled its option to buy the non-prescription lens production unit of Gentex Optics of the United States. The deal was seen as a …
The US sunglass manufacturer Oakley Inc. said last week that it had cancelled its option to buy the non-prescription lens production unit of Gentex Optics of the United States. The deal was seen as a way to provide a consistent supply of polycarbonate lenses for Oakley“s sunglasses. Oakley did, however, reach terms on a previously announced deal granting it exclusive rights to purchase decentered sunglass lenses and a scratch-resistant coating from Gentex and its parent company, Essilor International. Oakley also reached a two-year agreement with an Essilor subsidiary to distribute Oakley-branded prescription lenses for use in Oakley“s current and future sunglasses frames. Terms were not disclosed. Oakley has laid off more than 100 manufacturing plant employees in recent weeks because of lower-than-expected demand for its sunglasses, the company said last week. Lay-offs in the company“s plant reduced Oakley“s full-time employment total to 580, down from 700 a year ago, said Oakley“s Executive Vice President Link Newcomb. Newcomb blamed the lay-offs on inventory levels that increased sharply in recent months after Sunglass Hut, the company“s single largest customer, cancelled scheduled orders prior to the holiday shopping season. Newcomb said that Oakley traditionally has laid off employees during the winter months, when demand for eye wear slows. But this year, Newcomb said, there had been more lay-offs than in past years. Newcomb added that some full-time employees were also laid off because Oakley is moving production to a new, more efficient manufacturing plant and headquarters complex. Newcomb said Oakley hopes to begin hiring staff again during the second and third quarters.