Stampin' Up! says layoffs imminent

Stampin' Up!, a Riverton-based direct sales company, announced Friday to its employees that layoffs are imminent and are expected to happen by the middle of next month. The company manufactures and sells decorative rubber stamps and crafting accessories and employs about 500 people — all in Utah, according to spokeswoman Dana Robinson.

She told the Deseret News that the company's approximately 10 percent decrease in sales over the past two years has forced Stampin' Up! to make some difficult choices as it has tried to cope with lower sales revenues.

"Layoffs are our last choice, obviously, but every aspect of our business is being looked at right now, and it looks as though operating cost is going to be hit," she said.

Robinson said that the company has already cut costs in virtually every part of the business to mitigate lagging revenue. This will be the first time in its history that the company has experienced major layoffs, she said.

"Making this decision is one of the most difficult things I've ever done, but we have a responsibility to preserve and protect the businesses of over 40,000 global demonstrators (independent consultants) by allocating company resources responsibly now," Shelli Gardner, chief executive officer and co-founder of Stampin' Up!, said in a news release.

According to the release, the 20-year-old, $200 million direct sales company designs and manufactures decorative rubber-stamp sets.

In addition, the company offers accessories for home decor, greeting cards, craft projects and scrapbooking.

The company's products are not sold in retail stores, but rather at home workshops or through a network of independent sales consultants in the United States, Australia, Canada, France, Germany, New Zealand and the United Kingdom, the release said.

Regarding the layoffs, Robinson said that how many workers will be affected has yet to be determined.

"Our goal is to maintain as many positions as possible and not have to do this again in the future," she said.

"It's a painful decision we're having to make now," Robinson said.

E-MAIL: jlee@desnews.com