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December 1, 2007
NEWARK - The Longaberger Co. announced the layoff of 30 more employees Friday as part of its ongoing plan to streamline the business.
The majority of the layoffs came from company's Newark headquarters in the basket-shaped office building, with a few at the manufacturing campus near Frazeysburg. They held positions at a variety of levels with varying responsibilities. None were basketmakers.
The layoffs come four months after a change in company presidents and layoff of 113 employees at the corporate headquarters. The company also laid off 710 employees in March, but recalled 471 in June.
The workforce reduction is part of the company's recent strategy to cut its product line and reallocate resources to improve sales while continuing to focus on streamlining the business, company spokesman Tom Matthews said.
"The reality is if you are simplifying the business you may not need as many functions to support it," Matthews said. "Unfortunately, this has impacted people. They'll be missed. Their contributions are appreciated. It wasn't an easy decision by any means."
Longaberger officials also denied rumors that a top company executive had been dismissed in Friday's moves, saying he simply was out of the office this week.
The region's largest company has lost 65 percent of its workforce since 2000 and now employs fewer than 2,800, down from more than 8,200.
The news comes just two weeks after CEO Tami Longaberger and new President Jim Gimeson said they were very optimistic about the future of the company. Matthews said nothing has changed in that outlook and the moves are part of an overall plan developed this summer when Gimeson was promoted.
In July, Gimeson said, "This realignment amounts to a fine-tuning of our efforts to better match our future direction. By streamlining, we will lower our cost base and narrow our focus to those initiatives that lead to sustainable growth."
More company officials will be focused on working directly with the sales field, including an improved career opportunity program for sales consultants and richer benefits for hostesses, Matthews said.
"Our product offering has swollen to a size that is just enormous, probably the largest in company history," Gimeson said recently. "We did cut the product line in half years ago, to then subsequently increase it by more than half.
"Why it's significant is that if you're trying to grow your business, there's just a manageable number of items you do that with and really tell their story. They truly can sell more with less."
The company will focus on its core products of baskets, pottery, wrought iron and fabric, with other items phased out of home shows and consultants' wish list catalog.
"Some products will retire and some products could end up being sold in other channels, such as the (Longaberger) Homestead or online," Matthews said. "We're always in a continued state of trying to find programs to help our sales field grow their business."
The So Rachel product line, inspired by Rachel Longaberger, sister of CEO Tami Longaberger, will move to sales online.
In January, Tami Longaberger had said the company's expanded product line, including offers handbags, jewelry and other accessories as part of the So Rachel line, had helped increase sales.
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