L.L.Bean eyes restructuring, layoffs
Unexpectedly weak sales at L.L.Bean this season have executives considering restructuring moves that could include layoffs.
In a monthly e-mail to employees obtained by The Times Record, CEO Chris McCormick said sales targets are down 10% or more and the company can't count on much relief in 2009. The company, which projected flat sales for this season, will open only two of eight planned stores next year and plans to announce voluntary retirement incentives. Still, layoffs might be unavoidable, McCormick said in the letter. "Even with these options on the table, it is now unlikely that we will be able to avoid some level of involuntary position elimination ... Decisions will be made through the budget process in January and February and communicated once this process is complete."
McCormick said the company, which operates essentially debt-free, has positioned itself for long-term sustainability. While L.L.Bean has grown and expanded in recent years, it cut 175 positions in 2001 and 350 jobs in 1995, the paper reported.
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