Thread regarding Fossil Inc. layoffs

Dallas Morning News article about layoffs

https://www.dallasnews.com/business/retail/2020/02/21/fossil-lays-off-employees-at-its-richardson-headquarters/?utm_source=pushly/

Please note it’s behind a pay-wall.
Full Article pasted below:

Headline: Fossil lays off employees at its Richardson headquarters
The fashion watch and accessories maker has been trying to adapt its business to better respond to changes in consumer preferences. Its stock price has declined 60% in the last year.

Fossil Group has had an undisclosed number of layoffs this week at its Richardson headquarters.

The fashion watch and accessories maker confirmed that people lost their jobs but didn’t provide details. At the end of 2018, Fossil’s total employment was 10,800, including 6,600 in its foreign subsidiaries.

“Difficult decisions, such as head count reductions, have been a necessary part of this initiative and have helped Fossil Group become a more streamlined and efficient company, well-positioned to drive shareholder value," said Darren Hart, executive vice president over human resources for Fossil, in an emailed response.

The company didn’t provide details of any separation benefits. “We are working closely with each of our impacted employees to help them during this period of transition,” Hart said.

“Fossil Group continues to thoughtfully execute our business transformation," he said. Fossil has been trying to adapt its business to better respond to changes in consumer preferences for buying traditional watches and connected devices that range from fitness trackers to smartwatches. The Apple Watch has taken some market share away from fashion watches, competing in Fossil’s price range of a couple hundred dollars to $1,500.

Fossil reported losses in 2017 and 2018 and is scheduled to report year-end 2019 results next week.

In November, Fossil reported a third-quarter sales decline of 11%, adding that it had strong sales increases in China and India, but those gains were more than offset by declines in the U.S. and Europe. More than half of Fossil’s sales are from outside the U.S.

Its wholesale business to other retailers has been toughest in the U.S. One of its strongest brands, Michael Kors, has been declining for a couple of years. Fossil is also in the crowded fashion jewelry and leather accessories business.

Fossil said fourth-quarter sales would decline in the range of 5% to 10%, and it expects a profit before income taxes of about $45 million to $60 million.

Fossil’s stock price has declined 60% in the past year and closed Friday at $6.01 a share.

—- Interesting how this very local-newsworthy business topic has not already been making headlines this last quarter, not to mention, years... I personally suspect Fossil has been censuring /suppressing all reporting about it in an effort to avoid any potential bad press. Funny, right? Decades of being a global retailer, albeit small, and suspiciously very little News, Op-Ed’s, Business Articles, international news coverage in Fashion, Tech or Retail publications...

Frustrating to think of, during this Information Age, that a publicly listed corporation can, and has, been able to avoid much public scrutiny at all, especially with the yearly repeat of layoffs.

People’s stories deserve to be told. The public and Shareholders, should confront what is the human cost of all their business lingo on “transformation”.

by
| 2281 views | | 3 replies (last March 2, 2020) | Reply
Post ID: @OP+13Di0Nzu

3 replies (most recent on top)

Pretty sure a lot of current employees write on here. Not jilted formers who are better off than the currents.

by
| | Reply
Post ID: @9vvr+13Di0Nzu

Quite frankly there is little conspiracy to be found here...Fossil has always kept a low profile with the media in spite being a public company (note no picture of Kosta on record, nor interviews etc). Realistically this company would have avoided the lay-off if it could but sales are shrinking, the market is extremely challenging and some bets have not paid off...there isn't much more they can do than resize for current realities

by
| | Reply
Post ID: @ovg+13Di0Nzu

No one is interested in talking to or reporting on a jilted ex employee’s story about their time at Fossil. Hard to be objective about your experience when on a Friday you had a job you loved and on Tuesday you’re unemployed.

by
| | Reply
Post ID: @yvj+13Di0Nzu

Post a reply

: