Martha Stewart holiday layoffs have been reported this winter season with roughly 100 staff members being let go from her company, and a source claiming that the layoffs were meant to make “MSO leaner and more entrepreneurial.” Despite this sounding like the domestic expert’s business isn’t doing very well, her company’s stock nonetheless saw a sharp 18% rise this week, showing that there are still some ups for the New-York centered moneymaker aside from the cuts. CBS News shared this widely searched story yesterday, Friday the 13 of Dec., 2013.
While Martha Stewart’s company’s shares — Martha Stewart Living Omnimedia (MSO) — may have been met with holiday layoffs recently, it’s apparently not letting the Christmas blues getting it too down on the economic front. The company experienced a high tick at 18% in its stocks, offsetting rumors that 100 staff members had been booted within the past couple of months. MSO’s stock topped off this Friday at $3.87, which marks the biggest bump in over a year.
Investors are thinking that these difficult layoffs aside, Martha Stewart Living will now plan on selling as much as it can with its balance sheet on the mend in light of the recent worker cuts. The letting-go’s themselves were orchestrated by the business’ most recent CEO, Daniel Dienst, despite his lack of media expertise. He believed the staff cuts were to make MSO "leaner and more entrepreneurial," adds an unknown source, with a spokesperson not commenting on the claim.
According to the latest press release on the matter:
“Martha Stewart Living, whose website currently features instructions on how to make a toy duck from recycled cashmere, has been in freefall for years as readership of its namesake magazines withered and her television shows lost viewership and were ultimately canceled. The company has only been profitable in one of the past 10 years. The New York Post, which broke news of the layoffs, estimates company savings at about $10 million a year.”
In light of these Martha Stewart holiday layoffs and other financial struggles, the company still has a difficult road ahead to success, but it also bears a noticeable (not to mention fortunate) lack of debt, which is certainly “a good thing,” as the domestic planner herself might add.
How do you think MSO will fare in the new year, 2014?