Jo-Ann to slash 8% of workforce
July 23, 2001-- Home Textiles Today,
Jo-Ann Stores will eliminate 8 percent of its workforce, or approximately 55 employees, most of whom work at the corporate offices here.
Over the past three years, the company has invested more than $210 million to install new enterprisewide information systems, build a new distribution center on the West Coast and open more than 50 Jo-Ann etc superstores, among other items.
But while revenues have grown during that time, the company said, profits have declined, resulting in turnaround initiatives announced in March to restore the company to profitability in the next year. They include foregoing new store growth, closing a number of underperforming stores and liquidating the 10,000 least-productive products from its assortment.
"Although eliminating positions is never a pleasant experience, this was a necessary step for our company in light of the reduced capital initiatives we anticipate," said Alan Rosskamm, chairman and ceo.
Jo-Ann Stores currently operates 928 Jo-Ann Fabrics and Crafts stores and 62 Jo-Ann etc superstores in 49 states.