Job Cuts & Plant Closings

CLEVELAND–American Greetings Corporation announced in late March that as part of a corporate restructuring plan it would lay off about 1,500 employees, some 13% of its work force, and cease operations in six facilities.

The measures, which company officials say will be taken immediately and conclude by the end of fiscal year 2002, come after the firm posted a $127.7 million fourth-quarter loss. American Greetings, which also lowered its earnings projections for fiscal 2002, lost $2.01 per share on earnings of $663.2 million.

"We are pleased to have met our revised projections for the year, but we are also aware that Wall Street had greater expectations of us," says chairman and chief executive Morry Weiss. "The marketplace realities contributed to our earnings revision and underscore the need for our impending restructuring."