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."
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