As part of its USD50 million cost-cutting and earnings improvement program, Vista Outdoor is closing down the headquarters of Bell Helmets and Giro Helmets. This decision is expected to result in significant staff layoffs and headcount reductions across the brands and corporate teams. The move is also expected to have a major impact on the marketing, brand, and creative departments.

The decision comes after Vista Outdoor reported slumping sales in key areas, despite a revenue increase of 34 percent compared to the same period the previous year. Gross profit declined by 15 percent, operating expenses rose by 16 percent, and earnings before interest and taxes fell by 39 percent. The SEC filing cites "elevated retail inventory levels, rising interest rates, and inflation" as contributing factors.

However, Vista Outdoor Action Sports President Jeff McGuane has assured customers that the move will not impact the separate brand identities under Vista Outdoor's umbrella. Instead, the company plans to merge Bell, Blackburn, Copilot, Fox, Giro, Krash, and Raskullz, and unite the teams at the current Fox offices. The offices will be transformed into a revamped Innovation Center that honors each brand's unique culture and ethos.

While McGuane's statement may reassure some customers, the decision to close down the Bell and Giro Helmets' headquarters is a major blow to the cycling industry. Many will be watching closely to see how this story develops and what it means for the future of these iconic brands.

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