US fly fishing tackle manufacturer and retailer L.L. Bean has warned of more job losses following flat sales last year.
In February nearly 500 workers took advantage of a voluntary early retirement package and another 100 jobs will go in April.
The company reported annual revenue of $1.6 billion in the year ended February 25th, slightly below the previous year. It also announced that employee bonuses will not be paid for the first time since 2008.
These measures, plus a tightening of the company’s returns and shipping policies and pension changes are also part of cost-cutting efforts.
The news was delivered in a staff memo last week in which Steve Smith, L.L. Bean President and CEO, told employees that a difficult retail environment and shipping problems related to a systems upgrade had caused a slight dip in sales.
He said: “As you know, 2017 was a very challenging year for L.L. Bean, as we continue to operate in a very dynamic, ever-evolving and uncertain retail environment. Given these headwinds, the company delivered overall sales revenues slightly under 2016. We regret the company performance will not allow L.L. Bean to pay a cash performance bonus for 2017.
“I know this is disappointing news for all of us. However, I am confident that the investments we have made this year provide the necessary momentum to set the company on the path to a prosperous future.”
L.L. Bean currently employs around 6,000 employees. In the last year it opened six stores and plans to add five more in 2018.
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