In a surprising move—yes, hear us out—QVC is laying off people. 900 people, as reported in the local paper.
We know retailers are suffering but we kind of thought that the television shopping group might be relatively immune. Why? Just like with lipstick, these items are often more inexpensive pick-me-ups. (Yes, yes, we know that there are big budget items on there, too.) But also the audience can be people who are tuning in to get company and cheered up by the hosts. People are more depressed nowadays so maybe they’re tuning in more? Perhaps, but, it looks like right now they’re just not picking up the phone as much as they used to in happier times.
The Delaware County Daily Times: The TV retailer announced Wednesday it was eliminating 160 jobs at its West Chester operations. The cutbacks are part of a bigger reduction that will see the company shed 900 jobs over the next 14 months. Many of those jobs will come at its West Chester location, where the firm got its start.
…Like many businesses, especially retailers, QVC is battling declining sales. The company said revenue in the last quarter was off 3 per cent to $1.64 billion.
The company is hoping the cuts will allow it to save $30 to $40 million a year.
Another 500 people at QVC’s distribution centre in West Chester will be getting pink slips in the coming months. In addition, the company is closing the West Chester call answering centre on March 27. That will put another 250 employees out of work.
Workers apparently will work through the holiday season and will be offered severance packages, a company spokesman said.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.