L.L. Bean Inc. sales fell 7.8% in 2008 to $1.5 billion, and said it expects sales to be down in 2009 as well, reported the Associated Press. The company said layoffs would be necessary this year, but President and CEO Chris McCormick said in a memo to his employees that he remains “cautiously optimistic” that the previously-announced voluntary retirement incentives will reduce the scope of layoffs in 2009.
In late January, L.L. Bean said it was freezing all wages and salaries for its 5,500 employees for the coming year due to slumping sales. The company also offered early retirement incentives to all employees who are 55 or older and have been with the company for five or more years. The program was to be offered at the end of February through early April.
The company stated Monday that no decisions will made on the number of layoffs until after the deadline for early-departure incentives expires in April.
McCormick said the company has pulled back on spending, brought in less inventory, hired fewer seasonal workers and avoided resorting to steep discounts. Despite the grim outlook, he announced a $330 recognition gift for all 5,000 full- and part-time employees to thank them for the way they responded to adversity in 2008.