NEWARK, Ohio -- The Longaberger Co. announced Wednesday that it will lay off 383 employees in its manufacturing workforce and eliminate 66 salaried professional and administrative positions in a continued restructuring effort.
According to a news release issued by the company, Longaberger was hoping to bring back a portion of the employees during the fourth quarter or by early 2006.
"We will need manufacturing employees back on the job when we have reduced our inventory," said Jim Gimeson, executive vice president of operations at Longaberger. "I look forward to being able to welcome back our talented employees who have worked tirelessly over the years to improve our productivity and quality."
In April, the company announced it would lay off 360 workers because of lower-than-expected sales at the nation's largest handmade basket maker.
Dave DeFeo, Longaberger president, said Longaberger had double-digit sales increases in June compared with 2004 results and continues to see high levels of productivity and efficiency, but that managing inventory continues as an operational focus for the company. DeFeo said this move, combined with continued positive customer trends, should balance the inventory issue by year-end.
"While we are seeing a return to positive sales momentum, we are taking a very conservative approach to realigning our inventory," said DeFeo. "Once this issue is resolved we expect to bring manufacturing employees back on the job."
DeFeo said job eliminations in the company's salaried workforce are based on ongoing efforts to eliminate duplicated efforts and operate the company more efficiently.
Longaberger, founded in 1973, sells handmade baskets, pottery and other home products through 70,000 individual consultants who sell the products from their homes.
Since 2000, Longaberger has eliminated more than 4,800 jobs, including 999 cut between September and December 2004.
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