Qurate Retail Group, which owns West Chester-based QVC, HSN, and other entities, announced it is dismissing approximately 400 employees as part of a restructuring initiative called “Project Athens.” This initiative aims to streamline operations and improve efficiency in response to changing market dynamics. The specific locations of the employees affected by these layoffs are not specified. Qurate provides those laid off with extended COBRA benefits, outplacement services, and severance pay. The severance package also includes continued access to the company’s employee assistance program.
According to its annual report, Qurate had nearly 27,000 full-time and part-time employees as of the end of 2021. QVC, a significant contributor to Qurate’s revenue, is the second-largest employer in Chester County.
Key Takeaways
- Major Layoffs Announced: Qurate Retail Group is laying off approximately 400 employees across various departments as part of its restructuring initiative, “Project Athens,” which aims to streamline operations and improve efficiency.
- Support for Affected Employees: Laid-off employees will receive severance packages, extended COBRA benefits, outplacement services, and continued access to the company’s employee assistance program.
- Impact on Key Figures: Longtime QVC hosts Carolyn Gracie and Dan Hughes are among those affected by the layoffs, highlighting the significant impact on both on-air talent and corporate staff.
- Financial Challenges: Qurate Retail Group has been struggling with declining sales and revenue, reporting a $51 million loss in the fourth quarter of 2022 and a 14% revenue decrease for the year.
QVC Parent Company Qurate Retail Lays Off 400 Employees Amid Sales Decline
The parent company of the QVC shopping network has terminated 400 employees, including two veteran on-air hosts, due to significant declines in sales and revenue.
The layoffs impacted staff at QVC and HSN, as well as corporate shared services teams in the U.S. The company stated that today would be the final working day for most affected employees, although a few will be phased out gradually. The layoffs involve around 400 team members across various departments. The company expressed that these difficult decisions are essential for refocusing and prioritizing key aspects of the business.
Following Quarte’s disclosure, longtime QVC hosts Carolyn Gracie and Dan Hughes announced their departures from the network. Gracie shared on Facebook that after 19 years, she is no longer with QVC. She expressed gratitude for her time at the network, particularly for the connections made with viewers, who she regarded as the most valued aspect of her role.
The statement highlighted that these problematic decisions were critical for realigning business management and focusing more intently on essential priorities. Qurate also stated it would offer severance packages and continue providing access to the company’s employee assistance program and benefits.
Image source
These layoffs are part of a broader multi-year revitalization strategy, Project Athens, outlined to investors last year. A vital component of this strategy involves reducing expenses, including personnel costs.
Previously known as Liberty Interactive Corp., Qurate Retail Group underwent a rebranding in 2018, moving its executive leadership from Colorado to QVC Studio Park in West Chester.
This is not Qurate’s first initiative to reduce its workforce in recent years; the company has also integrated other retail entities. In 2017, QVC merged with HSN, and two years earlier, it had acquired the mobile shopping platform Zulily. This merger formed the third-largest online and mobile retail entity in the United States, aimed at enhancing competition with major retailers like Amazon and Walmart. The merger was projected to save at least $75 million annually, impacting hundreds of jobs, primarily at HSN’s Florida location.
In November 2022, Qurate reported a substantial third-quarter loss of $2.74 billion, starkly contrasting the $127 million profit recorded in the same quarter the previous year. During this period, overall revenue fell by 13%. New CEO David Rawlinson II attributed these results to a challenging retail landscape and declining consumer confidence.
In early 2022, QVC closed a distribution center in North Carolina after it was damaged by fire, which led to nearly 2,000 job losses. Additionally, QVC previously sold one of its West Chester buildings for $17.5 million, consolidating its operations to Studio Park.
According to the financial report for the fourth quarter, the company experienced a $51 million loss. During this period, its revenue fell by 13% to $3.5 billion; for the entire year, revenue was down 14% to $12.1 billion.
David Rawlinson acknowledged that 2022 was a difficult year for the company. In the report, he cited continuous effects from a fire at the Rocky Mount fulfillment center in December 2021 and broader economic pressures that weakened consumer demand.
About QVC
QVC Inc., a part of Qurate Retail Group, specializes in various consumer products, including electronics, beauty items, clothing, home furnishings, jewelry, and accessories. The company markets its products through televised shopping broadcasts and online platforms. QVC distributes these broadcasts to cable and satellite providers and also transmits over digital terrestrial broadcast television. The brand portfolio includes QVC, Arte D’Oro, HSN, Denim & Co, Cook’s Essentials, Nature’s Code, Diamonique, Zuda, and Northern Nights. QVC operates in multiple regions, including the US, Germany, Japan, Italy, and the UK, with its headquarters in West Chester, Pennsylvania.
Joseph Segel founded QVC in 1986, aiming to provide a novel shopping experience via television. He named the company to reflect its commitment to Quality, Value, and Convenience, a strategy intended to gain consumer trust and develop a dedicated customer base.
About HSN
HSN, Inc., an American retail corporation based in St. Petersburg, Florida, offers various products, such as electronics, fashion items, home goods, jewelry, and health and beauty products. Established more than 40 years ago, HSN is the first shopping network. It is a subsidiary of Qurate Retail Group, including Cornerstone Brands.
HSN distributes its products globally, showcasing them on cable, satellite, and network television shows. Additionally, HSN operates various retail stores that specialize in miscellaneous shopping goods.
Conclusion
Qurate Retail Group’s decision to lay off 400 employees from QVC and HSN marks a significant move under its “Project Athens” restructuring plan. This initiative aims to streamline operations and adapt to changing market dynamics. Affected employees will receive severance packages and extended support services. These layoffs, which include notable on-air hosts, highlight the broader financial challenges faced by Qurate, including declining sales and revenue.
Despite these difficulties, the company is committed to refocusing its business strategy to improve efficiency and sustain its market position. The restructuring reflects the company’s efforts to navigate a challenging retail landscape and secure long-term stability.
