Longaberger financial woes continue as company lays off 200 employees.
Employees Drop from 8,200 to 2,575 in Eight Years
The Newark, Ohio basket company made headlines yet again with the announcement of additional staff reductions, this time mostly at its manufacturing campus in Frazysburg, Ohio. The bulk of the departing employees are basket weavers and others working in basket making support. These outgoing employess are on indefinite layoff, with recall rights for one year. In December, the company eliminated 150 positions at corporate headquarters, bringing the tally of departing employees up to 1,084 in less than a year. However, 471 of those have since been recalled. At its busiest, in 200, the company had 8,200 employees, now down to about 2,575 with the latest round of cuts.
It's the Economy, Stupid
Tami Longaberger, chief executive officer and acting president said, "This tough economy requires difficult but common sense decisions to insure we remain in a strong financial position." Within the company, there seems to be reason to hope that business will rebound. Longaberger reported record crowds at The Homestead, the company's shopping and dining destination, at which customers arrive by the busload. In January, the company saw a surge in new consultants. Online sales exceeded expectations by 100 percent in 2007.
Streamlining Upper Management
Taking over from departing President, Jim Gimeson, Longaberger decided the company was top heavy, and required streamling in order to make decisions more quickly and efficiently. On the plus side, the company rehired Kelly Walker as Vice President of Operations. Walker was previously employed by Longaberger, but left, rumor had it , because it was just too weird to work there.
