As part of its ongoing reorganization process, The Spiegel Group announced that it plans to close one of its customer sales and service centers, that its Eddie Bauer division has restructured its headquarters workforce and that it has realigned its corporate information services staff.
Bill Kosturos, interim chief executive officer and chief restructuring officer of The Spiegel Group said, “We are transforming and repositioning our business for future success. These initiatives are an integral part of the reorganization process and are key steps toward streamlining our business processes and operations in each division as well as across The Spiegel Group to reduce costs and enhance productivity.”
The company’s Spiegel Group Teleservices division, which handles the customer sales and service calls for The Spiegel Group merchant companies, will close a facility located in Bothell, Wash., which employs 365 associates. The facility is scheduled to close on July 6, 2003; associates will continue to be employed with the company through that date. Closing this facility will allow the company to better leverage the capacity in its other call centers, which are located in Rapid City, S.D., Hampton, Va., Saint John, New Brunswick, Canada, and Sydney, Nova Scotia, Canada.
The company’s Eddie Bauer division has restructured its organization to gain greater organizational and operational efficiencies. As a result, Eddie Bauer will reduce its headquarters workforce in Redmond, Wash., by approximately 180 associates, effective May 9, 2003. The new organizational structure will better support Eddie Bauer’s multi-channel marketing strategies and bring even greater focus on serving customers, developing product and solidifying its brand positioning. Eddie Bauer associates were informed of this decision earlier today.
The Spiegel Group realigned its corporate information services organization in response to the company’s redefined systems strategy, which included a significant reduction in systems development initiatives. Corporate information services provides systems support to all the Group’s operations. This realignment has resulted in a headcount reduction of approximately 90 associates. The majority of the associates affected were located at the company’s headquarters and its data center, which are both in the Chicago area.