Tree Island Wire Income Fund (TSX:TIL.UN) has cut 10% of its salaried staff to reduce costs in the face of difficult market conditions.
The Richmond-based company will trim 22% of its U.S. and 6% of its Canadian workforce.
Tree Island said that while it has had strong revenue and profit growth from its recent acquisition of California-based Baoan International Investment Co., the persistent downturn in the U.S. housing market required the income fund to cut costs.
The staffing cuts come a couple months after the fund announced that it would close three U.S. locations: its office in Covina, California, its wire-mesh facility in Corona, California, and its collated nail production plant in Ferndale, Washington.
The combined closures is expected to save Tree Island approximately $2.5 million annually, although the fund noted it would realize a one-time cost of $1.2 million from the closures.
Tree Island's unit price range during the past week: between $4.15 and $4.40; 52-week high: $8.90; 52-week low: $4.03.