Bassett cuts 50 jobs; will save $7M-$8M a year
By Furniture Today Staff -- Furniture Today, March 23, 2009
BASSETT, Va. — Full line source Bassett Furniture says it will reduce its payroll by about 6% or 50 positions as part of a series of cost cuts that are expected to save the company $7 million to $8 million a year.
Savings will come in payroll, benefits, warehousing and distribution, marketing and other costs, a new release said.
The job cuts will affect the company's corporate retail, administration, customer service, manufacturing and marketing areas. Bassett will take a charge of $300,000 to $500,000 in the second quarter for severance costs.
“We have been in a phase of cost containment for more than two years as the industry-wide slump persists,” said Rob Spilman Jr., president and CEO. “These latest moves reflect the fact that order volume and retail sales have settled at a level that leave us no choice but to dig deeper to match expenditures with revenues.”
Bassett also said it expects to save about 7% in distribution costs after closing a distribution facility in Mount Airy, N.C., in early March. Its operations have been consolidated into other U.S. and Asia warehouses and the facility is up for sale.
The company also plans to save money in marketing through reduced TV production costs and changes to its consumer catalog format.
Bassett said it will continue to invest in improving its Web site, with a relaunch set for May 1.
The company said it expects to realize the entire effect of the cost savings in the third quarter.
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