Fossil Makes Staff Cuts
Fossil Watches is the latest company in the troubled jewelry and watch sector to hit hard times. The maker of casual mid-priced watches, jewelry, handbags and accessories has announced that it is laying off hundreds of employees around the world to cut costs. JCK News reported that the company could be eliminating up to 260 positions which is four percent of its approximately 6,000 employees. Fossil's executive officers and senior vice presidents will be taking a pay cut and a hiring freeze is in effect. The company saw a 12.9 percent decline in fourth quarter net income but in fiscal 2008, Fossil's net sales rose 10.5 percent.
Fossil has slowed their plans for retail store growth. The company also has licenses for Giorgio Armani, Michael Kors, Adidas, Burberry, Marc Jacobs, and Donna Karan and sells their various lines through department stores, jewelry and watch stores, and specialty retailers around the world as well as on their website. The total payroll cost cuts should save the company about $16 million annually.