Gibson Guitar lays off 50

Nashville-based Gibson Guitar Inc. is laying off 50 employees worldwide, citing a drop in musical instrument sales of 20 percent.

Gibson officials would not say how many of its roughly 2,800 employees in the Nashville area would be affected by the layoffs.

Gibson has continued to gain market share, a company release says, but the extent of the slowdown in retail purchases and the uncertainty of when the market will recover has forced it to cut the size of its organization.

The large drop in purchases is being experienced in virtually all consumer product categories, the release says.

“We regret that the company had to reduce our work force today to meet the economic challenges faced by our industry,” says Henry Juszkiewicz, CEO of Gibson Guitar Inc. in a statement. “We believe our streamlined team of talented people will continue to serve our valuable customers in an increasingly excellent fashion. We expect to continue to build the finest instruments in the world and lead the industry in quality and innovation.”

Gibson says after implementing the layoffs it is positioned to be profitable even under more severe stress. Layoffs will allow the company to maintain a conservative balance sheet and be positioned for continued market share expansion.

Gibson is known for producing classic models in every major style of fretted instrument including acoustic and electric guitars, mandolins and banjos.