Plus   Neg

QVC Cuts Workforce By 160; Plans To Layoff 750 More - Update

Wednesday, QVC, Inc., a wholly owned subsidiary of Liberty Media Corp. attributed to the Liberty Interactive Group (LINTA), said that it has laid-off 160 team members today from U.S. locations, as a part of its cost-cutting strategy. Going ahead, the company has further plans to reduce headcount by 750 over the next 14 months, while creating 200 more positions at its Florence Distribution Center.

Mike George, QVC's president and Chief Executive Officer said, "I had hoped we could avoid layoffs as we pursued our long-term growth strategies, but after witnessing the continuing deterioration in the economy, I came to the reluctant conclusion that this was not going to be possible."

The company plans to eliminate 500 positions in its West Chester, Pa., Distribution center over time. Also, the company's West Chester, Pa., Call Center has been decided to be closed on or about March 27, 2009, resulting in the elimination of approximately 250 jobs.

The company however said that it intends to create approximately 200 positions at its Florence Distribution center, and have more than 300 representatives in its 'house representative program' by the end of next year.

In total, the initiatives are expected to result in the elimination of approximately 900 positions over the next 14 months, offset by the creation of around 200 new positions, for a net reduction of approximately 700 positions, or 5.8% of QVC's American workforce.

QVC now expects the cost-cutting initiatives to result in a $30-$40 million reduction in operating cost forecast for 2009.

LINTA ended Wednesday's regular trading at $3.46, down 7.98% or $0.30, on a volume of 4.7 million shares on the Nasdaq.

For comments and feedback contact: editorial@rttnews.com

Follow RTT