Zebra, a Lincolnshire-based company specializing in handheld computers and printers, is facing layoffs and a decline in revenue as it grapples with the aftermath of the COVID-19 pandemic. The company, known for its judicious approach to managing expenses, has made the difficult decision to reprioritize and invest in areas of its business that will strengthen its long-term prospects.
With the pandemic causing disruptions in supply chains and a surge in e-commerce sales, Zebra experienced a significant boost in demand, reflected in its soaring stock prices. However, as the global situation starts to stabilize, the company is now dealing with a post-pandemic slowdown. Analyses indicate that Zebra’s revenue fell by 2% in the first quarter of this year compared to the same period last year, and a further decline is expected in the second quarter.
The technology sector has been particularly hard hit, with companies like CDW also conducting layoffs. Startups, in particular, are struggling to secure funding and maintain sales in the challenging business environment. Zebra, known for its handheld computers and barcode readers used by retailers, trucking companies, and warehouses, has faced competition not only from traditional rivals like Honeywell but also from emerging players like smartphone maker Samsung.
To adapt to the changing landscape, Zebra has expanded its product offerings to include machine vision technologies, such as high-speed cameras and software used for defect detection and product tracking in manufacturing and distribution centers. However, these endeavors have fallen short of management’s short-term expectations, prompting a need for increased investments in these products.
Analysts predict that Zebra’s second-quarter revenue will decline by approximately 10%, with a cumulative decline of nearly 5% for the entire year. However, there is optimism for a rebound in the coming year, with an anticipated 8% growth in revenue. Bill Burns, who recently assumed the role of CEO, played a key role in the company’s expansion into the industrial-scanning and robotics sectors through strategic acquisitions.
While Zebra faces near-term challenges, its history of success and disciplined approach to managing operations provide a foundation for long-term resilience. The company remains focused on identifying new growth areas and investing strategically to strengthen its position in the market.
As Zebra prepares to announce its second-quarter earnings on August 1, the impact of the post-pandemic slowdown will become clearer. The market will be closely watching how the company navigates these challenging times and whether its investments in emerging technologies can drive future growth.
In conclusion, Zebra, like many businesses in the Chicago area, is grappling with layoffs and a decline in revenue amid the post-pandemic slowdown. With the technology sector facing headwinds, Zebra is reprioritizing its investments to strengthen its long-term prospects. While short-term challenges persist, the company remains optimistic about a rebound in the coming years. As the market eagerly awaits the second-quarter earnings report, all eyes will be on Zebra and its ability to adapt to the changing business landscape.
