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Sierra Trading cuts 12 jobs
By Harriet Weixel
This document was published online on Wednesday, January 14, 2009
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| Jay and Linda Perkins browse through a bin of sweaters Wednesday at Sierra Trading Post. The company will cut a total of 85 positions from three locations. (Photo by Sara Loven) |
Twelve people are losing their jobs at Sierra Trading Post in Cody.
It’s the first work-force reduction time in the 23-year history of the company, which also has stores in Cheyenne, near Boise, Idaho, and in Reno.
About 66 employees will be cut in Cheyenne and seven in Boise. No positions are being eliminated in Reno.
“The total reduction will be a bit less than 10 percent of Sierra’s 830 employees,” president and founder Keith Richardson said.
In Cody, Sierra Trading Post operates a retail store on 8th Street and a call center on Blackburn Street; jobs were lost at both facilities. Prior to the announcement, Sierra employed 89 people in Cody.
“We are in the midst of the worst retail climate in generations. Retail sales in the fourth quarter of 2008 plummeted and deep discounting in all sectors failed to induce the consumer to buy,” Richardson said. “And current economic forecasts call for a deepening and protracted recession.”
Sierra Trading Post, based in Cheyenne, sells famous name brands at reductions of 35-70 percent through eight speciality catalogs, its Web site and four retail stores.
“It’s with great pain we made this decision,” Richardson said. “We avoided making it until we were certain the macro-economic trends were not short-term. It is now unavoidable, and we are faced with a climate of shrinking retail sales for the foreseeable future. To ignore this trend would be irresponsible. We must re-size our employee structure and realign it to the marketing channel shifts we have experienced.
“We will emerge from this painful trial as a stronger company, better able to profitably compete in the new economy of the foreseeable future,” he added. “Our business model of offering great deals on great brands will become even more valuable to the cash-strapped customer of the future.”
Bob Koehler, the company’s human resource director in Cheyenne, said at the present time no additional layoffs are expected.
He said employees with two years or more of service received severance packages. Company directors also are taking pay cuts, he added.
(Harriet Weixel can be reached at harriet@codyenterprise.com.)
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Get it right wrote on Jan 26, 2009 1:12 AM: