Boston Acoustics Cuts 30 Employees

Boston Acoustics, a division of D&M Holdings, has laid off 30 employees in an effort to "create more efficiencies for the company," D&M director of corporate communications Gail Petersen says.

Petersen is denying reports that RHJ International, D&M's principal shareholder, is eliminating positions and auctioning off stock in preparation to sell the company.

The news first broke in Ted Green's Stratecon ALERT.

Peterson did not confirm RHJ's stock selling, saying any information that has been published about the shareholders "is all rumors."

The layoffs, according to Petersen, were a result of a more efficient business model and a smaller product line this year.

"Last year, Boston Acoustics had a very large new product offering, meaning there was a lot of product development going on," Petersen says.

"There won't be as large a product development this year. Therefore, some of the product development people were let go."

Boston Acoustics, which was acquired by D&M Holdings in August 2005, now has sales offices in Latin America and Europe.

"Boston has become more efficient as a company with a sales and marketing business model that is global," Petersen says. "They have more sales channels than ever before."

D&M Holdings also markets Denon and Marantz and has other acquisitions including McIntosh, Snell Acoustics, Escient, Philips Sound Solution, Calrec Audio, and Allen & Heath.

Petersen also says reports that Boston Acoustics and Snell Acoustics are combining are untrue.

"They are sharing resources," Petersen says. "Resources meaning an IT employee, accountant, or sales person. It has nothing to do with the companies actually combining.

"Snell Acoustics and Boston Acoustics are still very separate companies that sell and market to their respective customers."