Martha Stewart Living Omnimedia Inc., New York, has cut 40 jobs from its online and direct mail operations. The reductions leave roughly 600 employees at the company.
Most of the positions were eliminated in the company’s New York offices, according to spokeswoman Elizabeth Estroff. The cuts, which were made across all disciplines, were announced on Thursday, and the individuals are no longer employed by the company, Estroff said.
The company has said that the cuts were unrelated to its financial arrangement with Kmart. The retailer filed for Chapter 11 bankruptcy protection on Jan. 22.
Martha Stewart’s Internet and direct commerce divisions recorded $48.8 million in sales during fiscal 2001, compared with $49.7 million in fiscal 2000. The division had an earnings loss of $24.8 million, compared with a loss of $25.5 million in 2000. Martha Stewart’s other three divisions, publishing, television and merchandising, were profitable in both years. The company’s financial year ended Dec. 31.
