Vermont Teddy Bear laid off 11 full-time employees Thursday.
The job cuts are in addition to the nearly 700 seasonal employees that were let go earlier this month following the Shelburne-based company’s busy holiday and Valentine’s Day seasons.
President Bill Shouldice said the company has seen 70% growth over the past seven years, but after this holiday season, company leaders decided it was time to step back and digest that growth. He said they realized that the company was overstaffed, and needed to reduce its overhead costs.
“I said, ‘where are we now, and where do we want to be in the future?’” Shouldice said.
The layoffs will come from distribution, sourcing, and product development, according to Shouldice.
“We just realized we were producing more products and ideas than we could take to market,” he said.
Two years ago, Vermont Teddy Bear had 110 people on staff, according to Shouldice. That is the total they are now returning to.
“Over the next year, people will retire or leave to find other work, and if they do, and if it’s a critical role, we’ll be hiring for the vacancy,” he said. “But we think our carrying capacity is about 110.”
Shouldice, who said the company makes “the best teddy bears in the world,” said Vermont Teddy Bear faces a lot of competition, especially from abroad.
However, Shouldice said, he thinks Vermont is “a great place to do business.”
He said that as a fifth-generation Vermonter and former commerce secretary under Gov. Howard Dean, he understands that companies like his need to pay their fair share when it comes to taxes and other fees. He said it has been his priority to build a business that can do that in Vermont.
“I don’t think that means we’re not subjected to the pressures that businesses face, be it competition or the tariffs that were imposed — that’s a big number for a company like us to digest,” he said. “Business is hard, regardless of where you are, but I can’t imagine doing it in any place other than Vermont.”
Shouldice said in the 30 years he’s been in business, Thursday was one of his worst days.
“I pride myself as being a serving leader amongst willing followers,” he said. “Making these decisions is not a lot of fun. On a personal level, I’m not going to rest until those people no longer with us find great jobs somewhere else.”
A spokesman for the Vermont Department of Labor said they can’t comment on any specific layoffs. The state agency has not been in direct contact with the company, according to Kyle Thweatt, the department’s communications and outreach coordinator.
“For those impacted by this reduction in staff, the Department of Labor is ready to assist by providing resources and services for re-employment or unemployment insurance benefits,” he wrote in an email, referencing the department’s workforce development division.
