Blaming a downturn in the economy, Big Dog Motorcycles announced a layoff of 20 employees on Friday.

In an e-mail from Marketing Director Paul Hansen, he admits that 2007 was a difficult year for the custom motorcycle builder. The high-end motorcycle market has suffered with the housing market decline and the financial lending crisis.

"We believe that a lackluster economy will continue to keep demand for our motorcycles lower than normal over the next year," said Hansen.

The 20 positions come from across the company.

"These are good people, and a most difficult task. The affected employees have been treated with respect and fairness."

"The good news is that once the economy rebounds, Big Dog Motorcycles is perfectly positioned to continue to be the dominant player in our market for years to come and hold our position as the
world’s largest manufacturer of custom bikes. "

Big Dog laid off around ten employees during mid-2007.

Here is the official statement:

This has been a difficult year for Big Dog Motorcycles. 2007 represented a tough year for all companies in the high-end recreation business. The housing market decline and the financial lending
crisis have been huge issues for America’s economy. RVs, boats and upscale motorcycles are often the first and hardest hit as the country enters a recession-like period.

We believe that a lackluster economy will continue to keep demand for our motorcycles lower than normal over the next year.

As a result of the adjusted production demand forecasted for the coming year, Big Dog Motorcycles has announced a layoff of approximately 20 employees throughout the company. These are good
people, and a most difficult task. The affected employees have been treated with respect and fairness.

Our goal is to resize the company to a level that can be successful, even in a down market. The good news is that once the economy rebounds, Big Dog Motorcycles is perfectly positioned to continue to be the dominant player in our market for years to come and hold our position as the world’s largest manufacturer of custom bikes. We are a sizable company with excellent dealers, a great brand name and a strong diverse line-up of new models. We expect a respectable 2008, even with a murky economy.