Following a restructuring that resulted in a 35 percent U.S....

Following a restructuring that resulted in a 35 percent U.S. workforce reduction that claimed its Savannah, Ga., warehouse operation and executive marketing positions held by Jodi Sally and Michael Paladino, Coby plans to get back on track by focusing on key categories, President Michael Troetti told Consumer Electronics Daily. Troetti cited a poor retail environment in February and March, a “dive in sales” for legacy categories including DVD and portable audio players, and tax hits to its core “middle income” core customer base as factors leading to the layoffs of 42 employees. Sally’s position as vice president-marketing and Paladino’s senior product marketing manager post were eliminated in the restructuring and their marketing duties will be assumed by Troetti, Christi Park, marketing manager for headphones, and Ian Kolker, who had been tablet product manager, he said. All shipping will be handled from Coby’s Carson, Calif., warehouse following the shutdown of the Georgia operation at the end of June, he said. On the product side, the company will cut back on SKUs in its DVD and portable audio lines with a focus on going “narrow and deep” with “strategic SKUs that offer sufficient return on investment” rather than having a wide product assortment in those categories, he said. The company will continue to be “very competitive” in tablets, and will boost its headphone presence through microphone-equipped models designed to ride the success of the smartphone market, he said. Coby will ship its first Bluetooth speakers within the next 60 days, Troetti said, and the company is beefing up its soundbar offerings after entering the market last year, he said. In TVs, Coby will continue to focus on smaller screen sizes -- 19-24 inches and 32- and “40-ish-” inches -- Troetti said, despite industry growth trends in the 50-inch and larger category. The company took a conservative approach to TV orders during Q1 after being told by overseas sources that panel prices were increasing, Troetti said. “That didn’t happen and we got caught short by not ordering product and holding out to take advantage of better pricing,” he said. In addition, retailers were focusing on tier-one products and getting instant rebates and other financial incentives to take on more merchandise. When TV sales slowed in February and March, second-tier brands were “squeezed out,” he said. “Rather than get caught with high inventories, we took a very conservative posture,” he said.