Source: Press Release 4/16/2010

Longaberger Press Release

The Longaberger Co. announced Wednesday a temporary layoff of 12 employees in its Woodcrafts Division.

The Newark-based basketmaker will place the employees on furlough beginning Friday, but plans to call them back July 12, company spokesman Tom Matthews said.

The move was needed to realign inventory at the company's manufacturing campus, he said.

The Woodcrafts Division, which consists of 42 employees before the furloughs, makes lids and accessories for baskets.

A year ago, Longaberger eliminated the dimension mill operation of its Woodcrafts Division, laying off 39 employees and sending some work elsewhere.

In September, the company unveiled a new line of collegiate and National Football League basket sets, hiring temporary help in Woodcrafts to prepare for the demand.

Longaberger hired a new president in October, when Robin Crossman took over the duties of managing day-to-day operations of the direct-selling basketmaker.

Tami Longaberger, chairwoman and chief executive officer, continued to lead the company, set its strategic direction and maintain strong ties to its consultants, the company stated at the time of Crossman's appointment.

The company recalled 50 basketmakers in October bringing its work force to about 1,450 employees.

Longaberger announced in January the layoff of 125 manufacturing employees, as well as a partnership with a Westerville company to take over its 100-employee Customer Fulfillment Center.

The company, which 10 years ago employed more than 8,000, now reports about 1,000 employees.

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