American Greetings Hands Pink Slips to 1,500 Employees

Share this content:
American Greetings Corp., the nation's No. 2 greeting-card maker, will shrink its product lines, close six plants and slash 1,500 jobs, or 13 percent of its full-time employee base, after reporting a $127.7 million fourth-quarter loss yesterday.


The Cleveland company posted the loss after recording the write-down of its $33 million investment in Egreetings Network Inc., an Internet greetings service, and a one-time tax reserve of $176 million.


Rising competition from the Internet and lower-priced cards from competitors such as Hallmark Cards Inc. have forced the company to lower its fiscal 2002 earnings to between $1.10 and $1.20 a share before nonrecurring charges.


"Anticipated changes in certain contractual relationships with strategic partners related to the corporation's Internet business will result in an unexpected pre-tax, non-cash charge of about $18 million," the company said in a statement.


"The company expects these forthcoming contractual changes, coupled with recent acquisitions and organic growth that have made AmericanGreeting.com one of the top 15 most-visited Web sites in the world, to ensure that the online business reaches profitability during the fourth calendar quarter of 2001," the statement said.


close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above