Citing a tough environment for the retail business, L.L. Bean said it will reduce its workforce in Maine, affecting about 50 to 75 people, or 2% to 3% of that staff.
Those affected will get severance packages and outplacement services, and some of the departures will be voluntary, Jason Sulham, L.L. Bean manager of public affairs, said in an emailed statement.
“As the company continues to evaluate the fluctuating retail landscape and adapt our organizational design to enable long-term growth, we will implement a small, focused workforce reduction to better align resources with company goals and objectives,” Sulham said, adding, “Workforce reductions are always difficult and never a decision we make lightly. We are committed to supporting those impacted with empathy, respect, and care just as we are committed to sustainable growth and building a strong future for our stakeholders.”
The plans follow a reduction in staffing and hours at the outdoor brand’s call center earlier this year. Those layoffs were “not a reaction to current business conditions or part of a larger workforce reduction, but rather a strategic response to long-term customer trends,” including consumers’ increasing use of self-service options online, the company said at the time. Specifically, more than 90% of calls occur between 8 a.m. and 8 p.m. while nearly 90% of orders are placed by customers themselves through llbean.com, rather than with live agents, the retailer said in April.
In June, L.L. Bean declared itself to be in expansion mode, citing new stores that were exceeding expectations. The company last year notched its third-highest sales mark, with $1.7 billion in net revenue, though “sales were down slightly year-over-year,” according to a March statement noting “significant headwinds felt across U.S. retail.” The company said that ongoing investment in an omnichannel growth strategy nevertheless paid off, with “year-over-year growth in key product categories, including outerwear, sweaters, and denim.”
The iconic New England brand isn’t the only one in the outdoor space grappling with a post-pandemic slowdown. In October, Orvis said it would lay off about 8% of its workforce and drop its popular catalog, and REI and Patagonia also resorted to layoffs this year.
