As part of a major restructuring, American Tire Distributors has laid off approximately 100 employees, the vast majority of which are in its corporate headquarters in Huntersville.
In a letter to employees this week, CEO Stuart Schuette said the reorganizing was intended “to align our capabilities with our strategy.”
“Today has been a tough day for ATD,” Schuette wrote in his letter Wednesday.
American Tire Distributors, also known as ATD, says it is one of the largest distributors of replacement tires in North America. The company has seen rapid growth in recent years thanks to post-recession demand in the tire replacement market, as well as through acquisitions and investment from private equity firms.
But growing competition has prompted ATD to re-examine its structure, Schuette told employees in his memo.
The tire industry is in the midst of a significant change, as witnessed by “recent industry announcements,” Schuette said. Bloomberg reported Wednesday that American Tire Distributors has lost business because of a decision by Goodyear and Bridgestone this summer to concentrate on selling directly to consumers.
Amazon.com has added even more competition: This spring, the e-commerce giant announced that customers who purchase its tires online can have them installed at Sears Auto Centers free of charge.
Schuette said that the company began a transformation about 18 months ago to make itself more digitally focused and technologically savvy.
ATD has said it operates 140 distribution centers and employs about 5,000 workers globally.
“As our industry has changed, so, too, has ATD,” the company said in a statement. “Our ongoing transformation led us to initiate a strategic repositioning nearly two years ago that is anchored in new technologies, analytics and digital capabilities.”