Publishers Clearing House terminated 213 employees over the past few weeks as part of a company downsizing in the wake of negative press surrounding the sweeps giant. The moves, which began Nov. 17, affect 27% of the company’s workforce.
Two-thirds of the personnel involved are based in PCH’s Port Washington headquarters, where the company’s marketing, information services, creative and finance departments are housed. Remaining job eliminations occurred at the company’s customer service and document processing center in Syosset, Long Island.
Robin Smith, PCH chairman and CEO said in a statement, “Because of the prolonged attacks on direct mail sweepstakes we are experiencing lower sales, and although we are pleased to have obtained preliminary approval for a nationwide class action settlement and expect to reach a settlement in the near future that will resolve the current multi-state investigation into our sweepstakes marketing practices, the anticipated cost of these settlements will be large. It is therefore necessary for us to reduce our overhead while we rebuild the business, in order to maintain our balance sheet strength and excellent credit rating.”
The company said that the reduction in workforce will not affect scheduled giveaways in PCH sweepstakes. However, one annual tradition will be altered. To commemorate the 21st Century, the company’s biggest annual prize will be upped from $10 million to $21 million. The award will be presented to the winner in a live TV commercial following the Super Bowl Jan. 30.
Network
