Hallmark Cards Plans Layoffs
As the Kansas City-based company looks to reposition itself, Hallmark Cards Inc. plans to lay off approximately 120 people, including 90 at its headquarters.
Here’s what you need to do now.
In working with Hallmarkers transitioning from Hallmark over the last 10 years here’s what I found that you need to know in order to be prepared in the event of a layoff.
- Prepare for a potential layoff. Make sure that you understand what your budget is what you might expect in regards to receiving a severance and how much it would be as well as how long it will last.
- Understand what your benefits are: make sure you know how much you have in your retirement plan in both your traditional accounts as well as your Roth retirement plans. Consider how much money you have in your investments as well as cash at banks and other savings institutions.
- Make sure you know how your health insurance and other insurance plans works. The last thing you want to do is get laid off and then come down with an illness or even worse a disability which you’re not covered for.
There is a lot more to know when going through a career transition so that you can avoid financial catastrophe and instead set yourself up for massive financial opportunity. For more than 12 years we’ve been helping people get through situations just like this and we work with a number of Hallmarkers.
Here’s the rest of the article from the biz journals
In a statement to the Kansas City Business Journal, Hallmark said; “Hallmark is transforming its business as people shop and engage with brands differently. This need is even more urgent now that Covid-19 has introduced more shoppers to digital and e-commerce solutions. To meet consumers’ changing needs, we’re investing in our marketing, modern digital experiences and supply chain capabilities in ways that will help us reimagine how we deliver our products. Part of this transformation includes a workforce reduction, as well as the continued restructuring of the Hallmark Global business to better position us to serve our retail partners and consumers.”
Hallmark plays in a tough industry. Early in 2020, one of its biggest competitors filed for bankruptcy and announced plans to shutter all retail stores and affiliated outlets. This was followed by Hallmark customer The Paper Store LLC filing for Chapter 11 bankruptcy. Hallmark is listed as their largest unsecured creditor, with nearly $1.3 million.
Amid the pandemic, Hallmark has faced other challenges. In a memo to employees earlier this year, CEO Mike Perry said Hallmark faces “rapid and steep declines” in U.S. retail sales. In addition to furloughing employees, the company has issued a 20% pay cut for Perry and other executives that will remain in effect until the business “has stabilized.”
Source – BizJournals.com
Hallmark Cards, Inc. Profit Sharing Ownership and Savings Plan is a defined contribution plan with a profit-sharing component and 401k feature. This plan has a BrightScope Rating of 80. For the average 401k participant, the 10 point difference between this plan’s BrightScope Rating (80) and the top rated plan (90) could equate to 6 years of additional work and/or $115,524 in lost savings.
The plans administrator is Beth O’shaughnessy and is handled in Kansas City, Missouri. The Recordkeeper is State Street Global Advisors.
One of the key concerns is that the plan only has 18 investment options which is common for most 401k type plans.
Most 401k, Profit Sharing or ESOP plans do not have active management so there really is no one guiding the plan investments. What this means is that like most traditional investment companies, in the event of an economic downturn there is no method for automatically moving your portfolio to a lower risk profile.
With the WealthSentry system we participate in, accounts are automatically re-balanced to lower risk portfolios in the event of a severe economic downturn. Learn more in our guide, 6 Critical Steps You Must Take Now.
For an in-depth analysis of your options feel free to make an appointment, read one of our guides or participate in one of our workshops.
Wishing you the best.
Doug Reed, CRPC, AAMS