Winnebago Industries Inc. will layoff more than 200 employees in the near future as the company faces what it believes will be a downturn in the motor home market this year.

“We are looking at downsizing to what we feel we need to get to in order to sufficiently provide product but do it profitably,” said Winnebago President Bob Olson, who will replace Bruce Hertzke as CEO and chairman in May. The comments came during a conference call today discussing Hertzke’s retirement and the succession plan put in place three years ago.

“I think it’s going to be a difficult year,” Olson said. Yet, he added, Winnebago is in a better position than it was in past market downturns with a strong balance sheet and no debt, lower interest rates, and efforts in place to better control inventories.

“We’ve tried to postpone [layoffs] as long as we have, because we felt that there was going to be a turnaround here and I think at best you’re going to look at ’08 as being flat,” Olson said.

In August 2005, Winnebago laid of 170 employees, but hired the majority back within 30 days. The expected layoffs will cut employment levels to around 3,000 workers.

Upon retirement, Hertzke plans to travel more in his Winnebago motor home, but be available to Olson as a consultant. Having worked with Hertzke for the past 22 years, Olson said he expects the company’s strategy to remain nearly the same.

The company has not named Olson’s successor as president; Olson will hold that title until one is named.