Stein Mart lays off 200+ employees, implements 5% pay cut

[David]

Stein Mart announced they're cutting 200+ jobs nationwide plus a 5% pay cut for all salaried employees. They're mostly assistant store manager positions. About 12 people were laid off at the corporate HQ in downtown Jacksonville.

I was a victim of layoffs over at JEA about 3 months ago, so this is deja vu...all over again.  Plus it's only my 3rd day here. How's that for a warm welcome! Luckily I'm not a victim this go around, i'm just thankful to have a job.

[stephElf]

holy crap!

talk about unsettling....

[The Compound]

What are you doing there? I worked in graphic design and production there at corporate WAY back in '94.

[David]

What are you doing there? I worked in graphic design and production there at corporate WAY back in '94.

Desktop support for corporate and systems/network support for the stores nationwide. It seems like a cool place to work, we'll just have to see how it weathers the downturn. IT seems to be the only department they're still hiring for these days.

Out of all the places i've interviewed at in the past 3 months, they seem the most laid back. I haven't work anywhere that supports a creative atmosphere in forever....but that may be because I came from JEA and it just appears that way.

[David]

Press release:

http://www.forbes.com/afxnewslimited/feeds/afx/2009/01/07/afx5892018.html

Jan 8 (Reuters) - Discount retailer Stein Mart Inc (nasdaq: SMRT - news - people ) reported an 8.5 percent drop in December same-store sales and said it would cut jobs and reduce salaries.

The company said it will reduce the number of assistant managers in most of its stores from two to one, resulting in the elimination of 178 positions, and cut 31 field and corporate positions.

Stein Mart said its management will take a 5 percent salary cut and added that it had suspended its corporate matching contribution to 401(k) and deferred compensation plans.

The company said it expects savings of $25 million in 2009 from the job reductions.

Total sales in December were down 9.3 percent to $178 million.

'We did take extensive markdowns in order to clear seasonal merchandise, and ended the month with total inventories down 21 percent as compared to the same period last year,' said Chief Executive David Stovall.

Shares of the Jacksonville, Florida-based company were down more than 3 percent at $1.43 in trading after the bell.