Posted on 07/12/2004 3:21:04 PM PDT by lelio
NEWARK, Ohio -- The Longaberger Co. is warning 970 employees - nearly a fifth of its work force - that they may be laid off in September if sales do not increase, the basket maker said Tuesday.
"We have been fighting hard to keep Longaberger jobs," said Tami Longaberger, president and chief executive of the maker of handcrafted baskets and other products, including pottery, wrought iron and fabric accessories.
Longaberger said sales have been lower than expected for more than a year.
The announcement was sent to the workers as part of a federal requirement to notify them before a layoff takes place, said Bonny Fowler, spokeswoman for Longaberger. The final number will be determined in the next two months.
"There are almost certain to be some. That is the maximum who could be affected by a layoff in September," Fowler said. "It will depend on sales for the period."
Longaberger has nearly 5,400 employees.
Fowler said basketmakers and those who support them would be the workers most affected. Fowler declined to say how much sales need to increase to avoid more cutbacks.
The privately held company posted record sales in the last two months of 2003 and continued strong into early 2004. But overall customer trends in 2003, combined with lower-than-expected sales during the past three months, has forced the 31-year-old company to take this step, the company said.
Most of the 970 workers are in manufacturing. The company has reduced its salaried work force by 21 percent the past two years and sold or stopped operating some assets.
Longaberger, based in this town about 30 miles east of Columbus, relies on nearly 70,000 independent consultants to sell its products to customers.
ping
I think the problem with Longaberger is that everyone in the country who wants any of their baskets already has them, and everybody else won't answer the door
In a thread I posted 3 years ago, Longaberger had 8,000 employees.
So during the Bush Economy, this company has lost nearly half its workforce.
Maybe if they didn't charge $50 for a small basket, sales would be better.
Maybe the consumers are getting wise to this foolishness.
My wife bought one of their baskets. It was about 4 inches in diameter and cost 50 bucks. It is a wicker beanie baby. That is why they are laying people off.
They're lovely but pricey, which is why I don't own one. :o)
Maybe I should buy a larger home to fit more of their baskets. Otherwise, hey have reached a their marketing saturation point.
btw--100% of my baskets were acquired during the Bush economy.
This can't be true. All those tax cuts for investors to create jobs has really worked. Say it's not so. Aren't there any Walmart, part time or fast food jobs there so the unemployed figures won't increase?
In agreement there...
Uh oh. Don't tell my sister this. She has too many of them as it is. I don't see what the big deal is with these baskets. And why do you have to give up your first born to buy one?
lol...you itchin' for one of my baskets?
;o)
"maker of handcrafted baskets"
There's going to be a lot of unimployed UCLA grads out there.
If a company making overpriced baskets is doing well, it is no proof the economy is doing well - it is just more evidence that many Americans like overpriced crap.
If a company making overpriced baskets is doing poorly, it is no proof the economy is doing badly - it is just evidence that this company is doing badly.
Maybe they should get into underwater basketweaving - I hear there's college courses for that.
In my dreams...lol!
lol oh that's really bad. :o)
NOT KIDDING! LOL! I went to a Longanberger "party" once and my friend and I kept flipping through the catalog looking for the sale items. I felt compelled to buy something - it was a friend giving the party - so I ended up buying the smallest basket, which, incidently, can't hold hardly anything other than some business cards, and it COST ME $50! For a tiny, weeny, BASKET?? Forget it.
Are you voting for Kerry?
But it's such a well crafted lovely little basket. :o)
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