Joann Inc., headquartered in Hudson, has confirmed staff layoffs at its corporate office, as reported by Crain’s Cleveland Business.
A spokesperson for Joann, Amanda Hayes, stated that certain positions across various departments are being eliminated to align the company’s corporate structure and expenses with its business needs. The exact number of layoffs has not been disclosed. Joann operates approximately 850 stores across 49 states.
As of late Thursday afternoon, the state had not posted a Worker Adjustment and Restraining Notification (WARN notice) for mass layoffs on its website.
Chris Foster, Hudson City Council President for Ward 2, expressed his concern about the situation, acknowledging the challenges many companies are facing, including downsising or even closure. Foster noted that Joann Fabrics has experienced a significant decline in revenue and profitability.
The impact on Hudson will become clearer once the exact number of job losses is announced.
Joann, which went public in 2021 after a decade of private ownership by affiliates of Leonard Green & Partners, reported a revenue of US $ 2.2 billion in 2022, marking an 8.3 per cent decrease from the previous year’s US $ 2.4 billion.
However, the company reported a net loss of US $ 200.6 million for the last fiscal year, compared to a net income of US $ 56.7 million in the prior fiscal year. The increase in losses is expected to continue into the current year, with Joann announcing net losses of US $ 127.5 million during the first two quarters of 2023, compared to US $ 92 million for the same period in the previous year.
In December of the previous year, Joann announced a US $ 200 million annual cost reduction plan, with a significant portion stemming from cuts in ocean freight costs, cost of goods, and overhead. These reductions are projected to be fully realized by early 2024.
