Slowing Sales Forces Cedco to Cut Staff
Roxane Farmanfarmaian -- Publishers Weekly, 1/18/1999
Cedco Publishing of San Rafael, Calif., which has had rapid growth the past several years, reduced its staff by 15% this month after experiencing disappointing sales in 1998. According to Cedco publicist Lara Starr, the reductions were "not previously anticipated" and came as a shock. Seventeen positions were cut, including managers in the licensing and promotions departments.Cedco, which had grown by 50% per year from its founding in 1978 to 1997, was included in Inc. magazine's list of 500 fastest-growing U.S. companies in 1998. Nonetheless, although the company projected sales of $75 million in the current fiscal year, up from $43.5 million in 1997, the year's revenues did not reach expectations. Cedco founder Charles Ditlefsen said that with growth leveling off, the company needed to bring staffing and budget levels in line.
Cedco's book division published 25 titles last year and expects to do the same in '99. "Our licensing and editorial departments are being reviewed," said Starr. "In the calendar division, titles that have not been performing are being trimmed." In fact, the company has cut the number of calendars it releases from 225 in 1999 to 175 in 2000.
This year, Cedco has signed new licenses with two TV shows, Buffy the Vampire Slayer and Ally McBeal. It has also signed licenses for Matt Gr nig's Life in Hell, and for South Park.
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