Daniel Defense Lays Off Large Percentage Of Work Force

BY Herschel Smith
6 years, 5 months ago

Reader David Dietz sends this from Recoil.

Amid ongoing reports of deteriorating sales in the black rifle market, firearms manufacturer Daniel Defense laid off an undisclosed number of employees. According to conversations with those affected and social media posts, on Friday, Sept. 29 and Monday, Oct. 2., the firearms manufacturer eliminated approximately 100 full-time positions.

A former employee of Daniel Defense affected by the layoffs said, “This was very unexpected. All of us were handed a blanket packet that explained everything. The paperwork didn’t even have my name on it. All they said about my job was that my position was being eliminated. There was no severance package, we were just fired.”

The scope of the layoff is unknown, but firsthand sources including current and recently laid off employees speaking under the condition of anonymity said anywhere from a third to a half of the company’s workforce was affected.

Speaking about the terms of employment at Daniel Defense and the layoff, one laid off employee said, “We all had to sign a non-compete. I think the non-compete I signed was for 2 years. The outgoing talk and paperwork didn’t specify the non-compete being lifted. It’s unfortunate for a lot of people who don’t have skills outside of the industry.”

According to former employees, Daniel Defense’s post-termination non-compete clause is contained in a standard employment agreement employees sign as they are brought aboard. It is used to protect the employer’s interests by preventing employees from working for a competing company for a certain amount of time, stipulated in the non-compete clause.

When asked about the existence of a post-termination non-compete agreement, the terms, and whether it will be enforced, officials from Daniel Defense refused the opportunity to comment.

Well, Daniel Defense has a right to force employees to sign non-compete agreements as a condition of employment.  But this is a shame for the former employees of Daniel Defense, who only know how to do one thing.  Hopefully they can keep their machinist skills up-to-date enough to return to the workforce when the agreement has been fulfilled.

On the other hand, one has to question the wisdom of Daniel Defense.  If they were prepared to throw good money after Super Bowl commercials (and apparently they were), and if their rifles are almost priced out of the market, and they are, then it seems wise to cut costs and MSRP, tighten the belt, and even cut employee salaries in an attempt to stay afloat.

This way (with the history of the non-compete agreement preventing employees from seeking other similar gainful employment), it would seem to me hard to hire good employees in the future.


Comments

  1. On October 10, 2017 at 10:23 pm, Joshua Smith said:

    Thankfully, non-compete contracts are rarely upheld by judges. Keeping a man from providing for his family is immoral, full stop. Most judges get this, and the only non-competes that are enforced are incidents where an employee made off with a sizable percentage of their employer’s customer base or IP.

    Contracts are only worth as much as a judge thinks.

  2. On October 11, 2017 at 8:10 am, Fred said:

    Agree with Joshua here. The former employees are not prevented from working. There are a dozen ways around it including things as simple as giving somebody a different title, such as from Machinist to Metal Fabrication Tech or something. As long as the guys don’t disclose any IP, operational, or business advantage that could be gained they are fine.

    Hopefully somebody will tell them this.

  3. On October 11, 2017 at 11:15 am, Lina Inverse said:

    Just the existence of a non-compete can prevent you from getting hired in the first place, a prospective employer just doesn’t need that sort of hassle, even if you eventually win in court.

    In this case, the former Daniel Defense workers are probably safe, since we’re the sort of community that would severely punish such a stunt, especially since Daniel Defense isn’t offering anything unique. But that’ll be less true if they don’t soon declare they won’t be enforcing it.

  4. On October 11, 2017 at 2:53 pm, David said:

    A Covenant not to compete will not be enforced Georgia if the employee didn’t receive substantial consideration for signing the agreement. I doubt Daniels would even try to enforce that agreement given it laid off the workers.

    I do like the DDM4 I purchased from Daniels.

  5. On October 11, 2017 at 3:16 pm, Randolph Scott said:

    No severance package, no sign the non-compete. Fuck the judge that tries to prevent them working in the industry. Fuck the employer for even asking people to sign the non compete horseshit.

  6. On October 11, 2017 at 3:35 pm, moe mensale said:

    Before everyone starts crapping all over DD and what the moron reporter failed to completely explain, is that this was a long planned workforce reduction and plant consolidation. All SC activities are being terminated and relocated to GA where corp. headquarters are located. Additionally, new positions are being opened up in GA which will offset some of the terminations. And this was to be finalized during late summer of 2017. Which is exactly where we are now.

    Obviously, the majority of people affected would be in the SC facility but for them to say this was totally unexpected is just BS and sour grapes. Didn’t they notice all the machinery being moved out over the last year?

    Here’s an article from a year ago discussing this.

    http://savannahnow.com/bryan-county-now-news/2016-10-19/daniel-defense-create-75-new-jobs-bryan-county

  7. On October 11, 2017 at 3:57 pm, Herschel Smith said:

    @moe,

    Thanks for the clarification. I do appreciate it. I’m not “crapping all over DD.”

    The non-compete agreement was signed as a condition of initial employment – I’ve also go that. That said, there were likely a number of employees who couldn’t relocate (due to things like dependent care and family members, etc.). Same as with any company.

    I’m hopeful that the non-compete is loose enough that it doesn’t prevent these folks from working as mechanics in the firearms industry, or gunsmiths, or somewhere they can use their skills.

    It’s not a question of legality for me, or even whether they knew. It’s a question of morality. These are men’s lives and livelihoods we’re talking about.

  8. On October 12, 2017 at 2:28 pm, moe mensale said:

    Understood.

    Regarding the non-competes, I’m not going to dwell on that because none of us here knows the specifics involved. I don’t see DD as a company that would attempt to harm, financially or otherwise, former employees. But non-competes are enforceable in both GA and SC. It all depends on what’s in them and we don’t know that minor detail!

  9. On October 12, 2017 at 2:31 pm, moe mensale said:

    BTW, I live in GA and I’ve never owned anything from DD. :)

  10. On October 18, 2017 at 6:33 pm, Johnny said:

    Moe,

    You are wrong. Most employees like myself were completely taken by surprise. We were told not to worry about our job and as far as a long planned reduction… no, we were offered money for getting people hired. Yes… that’s right. We were told that if we recommend someone for hire and they were, we would get paid. With this info, how would you expect anyone of us to really see if coming. Yes we had our concerns but we were told not to worry.

  11. On March 28, 2018 at 1:02 pm, Dan said:

    Just so everyone knows , non compete agreements are enforceable. They will hold up in court. Second, if you feel you want to fight the noncompete, the company can and will tie you up in court regardless, can you afford the time and Attorneys fees? Third, DD are way over priced. It doesn’t take rocket scientists to build a good A.R. 15 with quality materials. The Profit they make on these firearms is incredible. Greed has taken over, And if that is the case, are they hypocrites for preaching the religion. Just sayin

  12. On March 28, 2018 at 1:53 pm, Herschel Smith said:

    @Dan,

    I don’t begrudge a company for making money. Wealth isn’t evil. “The good man leaves an inheritance to his children’s children.”

    If they are “overpriced,” the market will tell them that and they’ll have to drop them.

    You can build your own ARs. True. One thing you get with a good manufacturer-built gun is all of the parts fitting together tightly and safely because it’s been designed and manufactured that way, e.g., machining tolerances to ensure head space is right. If you feel you don’t need that or want to do it yourself, then so be it.

    But wealth still isn’t evil.

RSS feed for comments on this post. TrackBack URL

Leave a comment


You are currently reading "Daniel Defense Lays Off Large Percentage Of Work Force", entry #17849 on The Captain's Journal.

This article is filed under the category(s) AR-15s,Firearms,Guns and was published October 10th, 2017 by Herschel Smith.

If you're interested in what else the The Captain's Journal has to say, you might try thumbing through the archives and visiting the main index, or; perhaps you would like to learn more about TCJ.

26th MEU (10)
Abu Muqawama (12)
ACOG (2)
ACOGs (1)
Afghan National Army (36)
Afghan National Police (17)
Afghanistan (704)
Afghanistan SOFA (4)
Agriculture in COIN (3)
AGW (1)
Air Force (40)
Air Power (10)
al Qaeda (83)
Ali al-Sistani (1)
America (22)
Ammunition (275)
Animals (280)
Ansar al Sunna (15)
Anthropology (3)
Antonin Scalia (1)
AR-15s (372)
Arghandab River Valley (1)
Arlington Cemetery (2)
Army (86)
Assassinations (2)
Assault Weapon Ban (28)
Australian Army (7)
Azerbaijan (4)
Backpacking (2)
Badr Organization (8)
Baitullah Mehsud (21)
Basra (17)
BATFE (217)
Battle of Bari Alai (2)
Battle of Wanat (18)
Battle Space Weight (3)
Bin Laden (7)
Blogroll (3)
Blogs (24)
Body Armor (23)
Books (3)
Border War (18)
Brady Campaign (1)
Britain (38)
British Army (35)
Camping (5)
Canada (17)
Castle Doctrine (1)
Caucasus (6)
CENTCOM (7)
Center For a New American Security (8)
Charity (3)
China (16)
Christmas (16)
CIA (30)
Civilian National Security Force (3)
Col. Gian Gentile (9)
Combat Outposts (3)
Combat Video (2)
Concerned Citizens (6)
Constabulary Actions (3)
Coolness Factor (3)
COP Keating (4)
Corruption in COIN (4)
Council on Foreign Relations (1)
Counterinsurgency (218)
DADT (2)
David Rohde (1)
Defense Contractors (2)
Department of Defense (210)
Department of Homeland Security (26)
Disaster Preparedness (5)
Distributed Operations (5)
Dogs (15)
Donald Trump (27)
Drone Campaign (4)
EFV (3)
Egypt (12)
El Salvador (1)
Embassy Security (1)
Enemy Spotters (1)
Expeditionary Warfare (17)
F-22 (2)
F-35 (1)
Fallujah (17)
Far East (3)
Fathers and Sons (2)
Favorite (1)
Fazlullah (3)
FBI (39)
Featured (189)
Federal Firearms Laws (18)
Financing the Taliban (2)
Firearms (1,758)
Football (1)
Force Projection (35)
Force Protection (4)
Force Transformation (1)
Foreign Policy (27)
Fukushima Reactor Accident (6)
Ganjgal (1)
Garmsir (1)
general (15)
General Amos (1)
General James Mattis (1)
General McChrystal (44)
General McKiernan (6)
General Rodriguez (3)
General Suleimani (9)
Georgia (19)
GITMO (2)
Google (1)
Gulbuddin Hekmatyar (1)
Gun Control (1,630)
Guns (2,298)
Guns In National Parks (3)
Haditha Roundup (10)
Haiti (2)
HAMAS (7)
Haqqani Network (9)
Hate Mail (8)
Hekmatyar (1)
Heroism (4)
Hezbollah (12)
High Capacity Magazines (16)
High Value Targets (9)
Homecoming (1)
Homeland Security (3)
Horses (2)
Humor (72)
Hunting (31)
ICOS (1)
IEDs (7)
Immigration (104)
India (10)
Infantry (4)
Information Warfare (4)
Infrastructure (4)
Intelligence (23)
Intelligence Bulletin (6)
Iran (171)
Iraq (379)
Iraq SOFA (23)
Islamic Facism (64)
Islamists (98)
Israel (19)
Jaish al Mahdi (21)
Jalalabad (1)
Japan (3)
Jihadists (81)
John Nagl (5)
Joint Intelligence Centers (1)
JRTN (1)
Kabul (1)
Kajaki Dam (1)
Kamdesh (9)
Kandahar (12)
Karachi (7)
Kashmir (2)
Khost Province (1)
Khyber (11)
Knife Blogging (7)
Korea (4)
Korengal Valley (3)
Kunar Province (20)
Kurdistan (3)
Language in COIN (5)
Language in Statecraft (1)
Language Interpreters (2)
Lashkar-e-Taiba (2)
Law Enforcement (6)
Lawfare (14)
Leadership (6)
Lebanon (6)
Leon Panetta (2)
Let Them Fight (2)
Libya (14)
Lines of Effort (3)
Littoral Combat (8)
Logistics (50)
Long Guns (1)
Lt. Col. Allen West (2)
Marine Corps (280)
Marines in Bakwa (1)
Marines in Helmand (67)
Marjah (4)
MEDEVAC (2)
Media (67)
Medical (146)
Memorial Day (6)
Mexican Cartels (41)
Mexico (61)
Michael Yon (6)
Micromanaging the Military (7)
Middle East (1)
Military Blogging (26)
Military Contractors (5)
Military Equipment (25)
Militia (9)
Mitt Romney (3)
Monetary Policy (1)
Moqtada al Sadr (2)
Mosul (4)
Mountains (25)
MRAPs (1)
Mullah Baradar (1)
Mullah Fazlullah (1)
Mullah Omar (3)
Musa Qala (4)
Music (25)
Muslim Brotherhood (6)
Nation Building (2)
National Internet IDs (1)
National Rifle Association (95)
NATO (15)
Navy (30)
Navy Corpsman (1)
NCOs (3)
News (1)
NGOs (3)
Nicholas Schmidle (2)
Now Zad (19)
NSA (3)
NSA James L. Jones (6)
Nuclear (62)
Nuristan (8)
Obama Administration (221)
Offshore Balancing (1)
Operation Alljah (7)
Operation Khanjar (14)
Ossetia (7)
Pakistan (165)
Paktya Province (1)
Palestine (5)
Patriotism (7)
Patrolling (1)
Pech River Valley (11)
Personal (72)
Petraeus (14)
Pictures (1)
Piracy (13)
Pistol (4)
Pizzagate (21)
Police (647)
Police in COIN (3)
Policy (15)
Politics (969)
Poppy (2)
PPEs (1)
Prisons in Counterinsurgency (12)
Project Gunrunner (20)
PRTs (1)
Qatar (1)
Quadrennial Defense Review (2)
Quds Force (13)
Quetta Shura (1)
RAND (3)
Recommended Reading (14)
Refueling Tanker (1)
Religion (491)
Religion and Insurgency (19)
Reuters (1)
Rick Perry (4)
Rifles (1)
Roads (4)
Rolling Stone (1)
Ron Paul (1)
ROTC (1)
Rules of Engagement (75)
Rumsfeld (1)
Russia (37)
Sabbatical (1)
Sangin (1)
Saqlawiyah (1)
Satellite Patrols (2)
Saudi Arabia (4)
Scenes from Iraq (1)
Second Amendment (667)
Second Amendment Quick Hits (2)
Secretary Gates (9)
Sharia Law (3)
Shura Ittehad-ul-Mujahiden (1)
SIIC (2)
Sirajuddin Haqqani (1)
Small Wars (72)
Snipers (9)
Sniveling Lackeys (2)
Soft Power (4)
Somalia (8)
Sons of Afghanistan (1)
Sons of Iraq (2)
Special Forces (28)
Squad Rushes (1)
State Department (23)
Statistics (1)
Sunni Insurgency (10)
Support to Infantry Ratio (1)
Supreme Court (52)
Survival (185)
SWAT Raids (57)
Syria (38)
Tactical Drills (38)
Tactical Gear (14)
Taliban (168)
Taliban Massing of Forces (4)
Tarmiyah (1)
TBI (1)
Technology (21)
Tehrik-i-Taliban (78)
Terrain in Combat (1)
Terrorism (96)
Thanksgiving (13)
The Anbar Narrative (23)
The Art of War (5)
The Fallen (1)
The Long War (20)
The Surge (3)
The Wounded (13)
Thomas Barnett (1)
Transnational Insurgencies (5)
Tribes (5)
TSA (24)
TSA Ineptitude (13)
TTPs (4)
U.S. Border Patrol (6)
U.S. Border Security (18)
U.S. Sovereignty (23)
UAVs (2)
UBL (4)
Ukraine (10)
Uncategorized (98)
Universal Background Check (3)
Unrestricted Warfare (4)
USS Iwo Jima (2)
USS San Antonio (1)
Uzbekistan (1)
V-22 Osprey (4)
Veterans (3)
Vietnam (1)
War & Warfare (412)
War & Warfare (41)
War Movies (4)
War Reporting (21)
Wardak Province (1)
Warriors (6)
Waziristan (1)
Weapons and Tactics (79)
West Point (1)
Winter Operations (1)
Women in Combat (21)
WTF? (1)
Yemen (1)

March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006

about · archives · contact · register

Copyright © 2006-2024 Captain's Journal. All rights reserved.