Lillian Vernon cuts work force by 12%, closes call center

Lillian Vernon Corp., a 50-year-old specialty catalog and online gift retailer, said that due to a sales shortfall, the company is streamlining operations to control costs. The plan will reduce 12% of the salaried work force companywide and the company`s Las Vegas call center will be consolidated into its primary call center in Virginia Beach, Virginia. In addition, the company will reduce other operating expenses and discretionary spending in response to a continuing downturn in consumer confidence. Lillian Vernon, chairman and CEO, commented, "Like most retailers, we are experiencing the economic downturn, and consumers are continuing to reduce their spending. We have reduced our inventory by 9%, or $3 million, from fiscal year 2000."