Minneapolis-based Graco announced today that it was eliminating 150 jobs, or approx. 6 percent of its workforce, because of slowing sales.
Graco provides manufacturers with fluid handling systems that do everything from putting tomato paste on pizzas to applying paint to cars.
Graco says the recession is putting a big dent in its sales. Order rates for its products are running 15 to 20 percent behind the pace for 2007. As a result, Graco says it has no choice but to let some employees go.
In a press release, company president and CEO Patrick McHale said, "It is impossible to ignore the impact of the global recession on our business and the challenging market that we anticipate in the year ahead."
To further control costs, the company is also cutting spending on big-ticket projects and reducing discretionary spending.