wfn.org | ELCA Publishing House Announces Staff Reductions

[News News <NEWS@ELCA.ORG>]

ELCA NEWS SERVICE

November 14, 1999

ELCA PUBLISHING HOUSE ANNOUNCES STAFF REDUCTIONS
99-281-JB/GA***

     CHICAGO (ELCA) -- Augsburg Fortress, the publishing house of the
Evangelical Lutheran Church in America (ELCA), terminated 34 employees
Nov. 12, said the Rev. Marvin L. Roloff, Augsburg Fortress president and
chief executive officer, in a memorandum to employees. The staff
reduction is part of a significant reorganization and downsizing of the
publisher that will result in new business units and discontinuation of
business operations no longer needed, Roloff said.
     Employees who lose their jobs were given severance and are
eligible for job placement services and insurance continuation.  The
employee reduction is part of a $3 million cut in expenses, Roloff said.
     In addition, as many as 38 employees are eligible to accept a
voluntary early retirement program.  Those who accept this option will
retire by Dec. 31, Roloff said.
     "Augsburg Fortress revenues have been in decline over the past 10
years and the company has not responded as well as it should to the
needs of our markets," Roloff said. "We have worked hard during the past
18 months soliciting feedback from our customers, significantly updating
our technology capabilities, revising products and developing a
strategic plan."
     Augsburg Fortress, based in Minneapolis, anticipates an operating
loss for 1999 and expects an operating loss next year as well, he said.
Despite that, the company does not have any debt and has a strong
balance sheet, Roloff added.
     Plans for reorganization and possible staff reductions were
reported to the Augsburg Fortress board of trustees, which met Oct. 21-
23 in Minneapolis.
     "We regret having to implement employee reductions, but we are
committed to assisting employees to the greatest extent possible,"
Roloff said.  "Fortunately the strong economy will help.  While these
staff reductions are painful, we are excited about this new strategic
direction and the opportunity to rejuvenate our mission in proclaiming
the message of Jesus Christ within the church and beyond."
     "We will move forward with new opportunities of leadership," he
added. "We intend to be the premier Christian publishing house in the
United States."
     Prior to the staff reduction, Augsburg Fortress employed 240
people at its corporate offices in Minneapolis and 114 people at 16
other locations around the United States, Canada and Puerto Rico.
     The restructuring is the result of an extensive study of the
company's operations by the Manchester Companies, Inc., a Minneapolis
business consulting firm.  In April, Augsburg Fortress board of trustees
endorsed several suggestions from the Manchester study, including a
recommendation the publisher refocus its business system to create a
market-driven organization.  As a result, Augsburg Fortress will be
restructured into four market-focused business groups.  They are:
     + An ELCA group, which will develop and market products needed for
worship and congregational life in ELCA congregations;
     + An ecumenical group, which will develop and market products
needed for worship and congregational life to all other denominations
and faith groups;
     + A professional development group, which will develop and market
such products as academic resources needed for development of church
professionals; and
     + A consumer group, which will develop and market products for
adults, teens, children and families used in settings outside of
congregations.
     In addition, business groups will be formed for Canada and
new ventures.
     "The board of Augsburg Fortress has approved and fully supports
the strategic plan and budget established by President Marv Roloff and
the management team," said Richard E. Lodmill, Seattle, board chair.
"The changes will position the (publishing) house to more effectively
accomplish its mission in responding to the needs of customers in theELCA, ecumenical partnerships, academia and general consumers.  The
changes will be difficult but will open significant new opportunities
along the way."
     A company meeting was planned for Nov. 15.  Information will be
provided about the new structure, business plans and how employees will
be involved in Augsburg Fortress' future direction, Roloff said.
     Augsburg Fortress is the third-largest Protestant church-owned
publishing house in the United States.  It provides education materials,
music, books, ecclesiastical arts,
electronic worship resources, computer products and other resources for
congregations and non-church markets.  It also publishes several
magazines, including The Lutheran and Lutheran Woman Today.

***Gayle Aldrich, publicist for Augsburg Fortress, provided information
for this report.

For information contact:
John Brooks, Director (773) 380-2958 or NEWS@ELCA.ORG
http://listserv.elca.org/archives/elcanews.html