Report: L.L. Bean Mulls Layoffs
L. L. Bean is considering layoffs, according to an internal e-mail obtained by The Times Record, a newspaper based in Brunswick, ME. The outdoor clothing and equipment catalog/retailer is based in Freeport, ME.
The Times Record reported that the e-mail was written by L.L. Bean president and COO Chris McCormick. In it, McCormick said the downsizing consideration comes among sales levels 10% lower than forecast, and few prospects for better times in 2009, the Times Record reported.
A spokesperson for L.L. Bean was not immediately available for comment.
The e-mail indicated the privately held company would offer incentives for voluntary retirement, and would hold off opening six of the eight new stores it planned for 2009, according to the Times Record. But, the e-mail cautioned, these actions would not necessarily eliminate the need for involuntary layoffs, the newspaper added.
According to the Times Record, L.L. Bean spokeswoman Carolyn Beem confirmed the company’s fortunes would be below last year’s. Beem also said the company was debt-free, and had hired fewer seasonal employees this year and managing its inventory more tightly than in years past, the paper said.
The e-mail makes reference to the layoffs coming in support of a transformation to a multi-channel setup, according to the Times Record. While the article did not elaborate on this, one possible interpretation is that the cuts will more heavily affect its labor-intensive retail operations, as opposed to its direct response activities.
