Jewelers' Circular Keystone (JCK) reports that watch retailer Fossil Inc. is cutting 260 jobs, about 4% of its workforce of 6,000. The company is also suspending pay increases and bonuses.
The jobs are being erased throughout Fossil’s operations, including corporate, seasonal employees who work peak times, and international operations. It has also put a freeze on hiring; and suspended merit pay increases, bonus payments, and 401k contributions.
The cost-saving actions are a "response to the current economic environment and reduced visibility to top line revenues," said the company's fiscal 2008 fourth quarter and full-year earnings report. They follow a 12.9 percent decline in fourth quarter net income (to $46.3 million) for the Richardson, Texas, firm, due largely to the impact of a stronger U.S. dollar on foreign sales, it said. (Over half of Fossil's revenue is made abroad.) For all of fiscal 2008, net sales rose 10.5 percent (to $1.58 billion) and net income increased 12 percent (to $138.1 million).
Channel 10 News says sales fell 13% for Fossil in the fourth quarter of 2008. However, Fossil was profitable for the year overall. An earlier story published in the Dallas Bizjournal had hinted at Fossil layoffs.
Fossil's story is similar to that of other retailers. Most retailers were in the black for 2008 until the last quarter. It's the fourth quarter of 2008 when most retailers took a big hit. Several major retailers reported large fourth quarter losses yesterday. (via Luxist)
Jewelers' Circular Keystone (JCK) 
