L.L.Bean announced Friday it plans to eliminate 100 positions this spring and will not be awarding performance bonuses this year.
The Portland Press Herald reported that L.L.Bean President and CEO Steve Smith told employees in a memo that 2017 was a challenging year, with a slight drop in sales and shipping problems related to a systems upgrade.
“Given these headwinds, L.L.Bean delivered overall sales revenues slightly under 2016 results, and net sales finished at $1.6 billion,” Smith said. “We regret the company performance will not allow L.L.Bean to pay a cash performance bonus for 2017.”
In two another cost-cutting measure reported by the Press Herald, L.L.Bean announced it also planned to stop subsidizing the cost of medical and dental insurance for employees who work fewer than 30 hours a week and would be offering another round of early retirement packages this spring to eligible employees.