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For week ended October 17, 1999 Posted 17 Oct 1999

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Franklin Covey to let 600 go

Summarized by Kent Larsen

Franklin Covey to let 600 go
Deseret News 12Oct99 B4
By Max Knudson: Deseret News business editor

In spite of a rise of two percent in its annual sales, Franklin Covey Co., announced Tuesday that it lost $8.8 million last year (51 cents a share) and would undergo a major restructuring, including the loss of 600 jobs, in order to return the company to profitability. Already 180 people have lost their jobs as the company, which is dominated by LDS leaders and workers, has started to concentrate on its core business and sell or outsource 'non-strategic' functions.

The layoffs will reduce Franklin Covey's operating expenses by $20 million. In addition, the company will sell its commercial printing subsidiary, Publisher's Press, which once distributed LDS products, and 'significantly reduce' its leased space in Provo, instead consolidating its operations in Salt Lake City. The Provo operation was the home of one of Franklin Covey's predecessors, Covey Leadership, founded by LDS business guru Stephen R. Covey.

Since the merger of Covey's firm with time planner manufacturer Franklin Quest in January 1997, the combined companies have reported disappointing financial results. In the wake of this latest announcement, the Deseret News asked if the two companies would have still merged, knowing what they know now. Richard R. Putnam, director of investor relations for Franklin Covey, said they would, "We'd still combine them, but we'd do what we're doing now sooner. We had good intentions and we thought the synergies were there, but I guess we had to experience the pain."

Copyright 1998, 1999, 2000, 2001 Kent Larsen · Privacy Information