UPDATE 3:12pm: After we published, Powell's sent out a press release about the layoffs. It doesn't delve into the specific numbers, but says that the market downturn forced the layoffs. “Consumer behavior —- how, where, and what people read —- has changed dramatically over the past several years,” it says. The whole thing is pasted below the cut, along with the email Powell's sent out to its staff this morning. Key detail: "Given that company sales are down this fiscal year, and that we are projecting annual sales decreases for the next few years, we need to take immediate steps to scale the company to our sales." DON'T DIE, POWELLS! DON'T DIE! (please)
Original post at 2:40pm:
The layoffs affect lower-level workers, no managers are under the axe. The branches affected are the Burnside store, the NW industrial warehouse, the Hoyt street warehouse, and the Beaverton store.
The laid-off workers comprise about seven percent of the unionized workforce, says ILWU Local 5 says union representative Ryan Van Winkle. ILWU Local 5 represents Powell's non-management workers and just celebrated its tenth anniversary last fall. Powell's contract allows the option to pay workers two weeks worth of salary in exchange for laying them off immediately, explains Van Winkle.
Van Winkle says the union and company have worked together over the past year to avoid layoffs by making other cuts, like reducing hours. "It's certainly an issue that they're not cutting managers. As a union," says Van Winkle. "We're worried about doing more work with less people and also, frankly, being sure that this doesn't disrupt the work the union does, like filling those cut jobs with managers or temporary workers."
Powell's is reportedly planning to make an official announcement about the layoffs today at 4pm.