LAYOFFS: NO LOVE AT HALLMARK CARDS (UPDATED 07-29-20)

JULY 29, 2020 — 120 COMPANY LAYOFFS, 90 AT THE COMPANY’S KANSAS CITY HEADQUARTERS

“Hallmark is transforming its business as people shop and engage with brands differently. This need is even more urgent now that Covid-19 has introduced more shoppers to digital and e-commerce solutions."

"To meet consumers’ changing needs, we’re investing in our marketing, modern digital experiences and supply chain capabilities in ways that will help us reimagine how we deliver our products. Part of this transformation includes a workforce reduction, as well as the continued restructuring of the Hallmark Global business to better position us to serve our retail partners and consumers." 

Original Post…

Kansas City, Missouri-based Hallmark Cards, the iconic manufacturer of greeting cards and specialty items, has announced a reduction in force to continue their restructuring and cost-cutting efforts.  Approximately 400 employees will be effected, including 325 positions at Hallmark’s Kansas City headquarters. The layoffs, some of which will be offered on a voluntary basis, will encompass all of the company’s functional areas including those in greeting cards, retail operations, and corporate  support functions.

According to president and chief executive officer, Mike Perry…

“Our success in 2019 reflects the power of the 100 plus year-old Hallmark and Crayola brands and their relevancy in the lives of our consumers. While there is a lot to feel good about, it is no secret that today’s companies must continuously transform in response to the rapidly evolving retail and consumer environments. The way people shop and the competitive dynamics in the marketplace are changing at a pace and at a degree that is having a significant impact on our businesses.”

“As we open 2020, we have a clear line of sight to the transformational work that needs to be accomplished and these efforts will lead us on a path that will enable us to realize the longer-term vision and mission we have for our business.”

“This transformation includes actions to reduce the size of the current global workforce for Hallmark’s greeting card business, retail business and corporate support functions. Perry announced to employees this week that the company is taking voluntary and involuntary actions that will impact approximately 400 of the company’s 30,000 employees around the world.  These changes, while not easy, will enable us to invest in new growth strategies that will ultimately help us realize our future vision. The products and content we create make a positive difference in the world. To be able to help others, and to build an enduring business, we must change.” said Perry. “Our efforts will be ongoing and by transforming the way we work, the way we go to market, and the way we serve our customers, we will be enabling our business to thrive and fulfill the promise of our brand.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? IS THE HANDWRITING ON THE WALL AT FRY'S ELECTRONICS (11/11/20)

OCTOBER 20, 2020 — FRY’S CLOSES CAMPBELL, CALIFORNIA STORE, WILL REPURPOSE THE SPACE

The digital wave is rolling over Fry’s as online purchasing in the days of COVID-19 continues. Few see the need to build their own electronic devices or accessorize their existing machines.

Following the closure of their Palo Alto, California store in December, 2019 …

A notice posted on their Campbell, California store reads, “To our valued customers, our Campbell location is permanently closed as of today. Fry's will repurpose this space in the near future. We will continue to serve you at our nearby locations San Jose, Sunnyvale, and Fremont. Thank you for your continued support and business!”

Original post…

San Jose, California-based Fry's Electronics, a major retailer of software, consumer electronics, household appliances, and computer hardware, appears to be in trouble.

Since its inception, Fry’s was the place to go for electronic components, even oddball items that were needed to prototype some of Silicon Valley’s most important projects.

It was a store that catered to geeks – even to offering clean shirts and clip-on ties for emergency meetings, along with snack foods and Jolt Cola, the high-caffeine mainstays of all-night programming sessions. The company expanded to household consumer items and appliances which was viewed by many as the beginning of the end as other big retailers of electronics such as Circuit City, CompUSA, and Computer City fell by the wayside. Now we are seeing many of the same electronics items and consumer goods directly available from the manufacturers or on the internet, from Amazon or directly from China’s Alibaba. With less frequent trips to Fry’s – and then only for a quick purchase. a decline in business would be expected.

Many of Fry’s customers are reporting empty shelves and a reduced selection of merchandise. The days when Fry’s would serve as a pseudo-social center to technology-minded geeks and gamers appear to be waning.

Speculation in social media is rampant with the sharing of empty shelve pictures and sad commentaries that point to downsizing or even bankruptcy.

According to the company, the empty shelves are the result of a restructuring of the company’s business model and a shift to a “consignment” sales regime that sees vendors providing inventory and getting paid post-sale. Claiming that it takes time and 245 vendors have agreed to support the new business model, the company adamantly claims it is not going out of business. Something we have heard from other retailers who put up a brave front until they crashed and burned.

In many cases, transitioning to a consignment business model is an indication of financial difficulties.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

LAYOFFS: NO LOVE AT SMART PHARMACY

Jacksonville, Florida-based Smart Pharmacy, a state-of-the-art compounding and retail pharmacy, has announced that it will lay off the majority of its staff by the end of 2019. The decision has already impacted 39 employees, with an additional 34 employees to be laid off at the end of the year. The positions eliminated include pharmacists, lab assistants, customer care employees, shipping specialists, and account representatives. It is estimated that the layoffs will leave an additional 52 employees to face an uncertain future.

A company spokesperson noted that the decision was made under severe financial pressure. In its filing with the State of Florida, the company claimed, “The company suffered extensive business losses over time and attempted to seek new capital through the sale of assets that would support continued operations. The company’s efforts to restructure were unsuccessful.

The State of Florida, Medicare, and the military’s Tricare have filed suit against the company for filing false claims. The case is scheduled for mediation with a potential resolution scheduled in February 2020.  

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?