Vancouver-based Art in Motion Income Fund (TSX:AIM.UN) is cutting roughly 11% of its staff, or 40 employees, in its attempt to reduce costs.
Job losses will be mainly in the company's manufacturing segment to deal with a decline in orders for wall décor in Art in Motion's 2007 second quarter and a continued drop expected in the company's third quarter.
In March, Art in Motion streamlined its management, eliminating its vice-president of manufacturing position.
The company posted stronger revenue of $14.7 million for its first quarter ending March 31, 2007, compared with $14.3 million in the same quarter in 2006. But Art in Motion warned that it's facing increasing competition and a drop in overall demand for wall décor.
An influx of cheap substitutes from China, changing consumer trends and economic conditions were cited as the main areas of concern for future quarters.
Art in Motion's unit price range during the past week: between $2.24 and $2.30; 52-week high: $3.45; 52-week low: $2.