Martha Stewart Living Omnimedia has commenced with significant layoffs, according to media reports. The move comes less than two months after MSLO hired turnaround expert Daniel Dienst as CEO.
At the time it hired Dienst, MSLO made a point of his experience in repositioning and growing publicly held companies. He already had won a slot on the board of directors.
The layoffs come just a month after the company announced that it struck a deal with eBay to launch the Martha Stewart American Made Market, exclusively on the e-commerce and auction site. The online marketplace throws a spotlight on “makers,” as the company terms the entrepreneurial developers of fashion and gourmet products, aiding artisans, celebrating the handmade and, as a consequence, supporting employment in the United States even as MSLO cuts jobs at its New York headquarters.
In the most recently completed quarter, MSLO revenues fell to $34 million from $44 million as publishing and broadcast generated fewer dollars. Merchandising revenues actually gained almost a million dollars to $14 million but much of the gain derived from royalties on goods sold through J.C. Penney, the company noted. After an October revision to a deal they had struck in 2011, MSLO no longer will sell goods through J.C. Penney that are covered by the company’s deal with Macy’s, a development which will hit merchandising operations.