Merry Christmas from Martha! Stewart fires 100 employees at her struggling company

  • Teary-eyed staff were 'escorted from the New York office by security guards' on Thursday
  • The staffing cuts expected to save company $10m next year
  • Stewart, 72, whose motto is 'It's a good thing' had her salary cut by $500,000 to $3.5m this year

By Louise Boyle

PUBLISHED: 11:27 EST, 13 December 2013 | UPDATED: 17:49 EST, 13 December 2013


Martha Stewart's company fired 100 employees on Thursday - an unwelcome surprise for workers in the run-up to Christmas.

The job losses came after Daniel Dienst - previously a scrap-metal recycling executive - took the helm as CEO at the struggling Martha Stewart Living Omnimedia two months ago.

Stewart, the company's 72-year-old chairwoman, was spotted last weekend mingling with an A-list crowd at the luxury international art fair Art Basel in Miami. 

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Getting in the festive spirit: Martha Stewart, pictured during a promotional event in Miami on December 7, has axed 100 staff from her company

Getting in the festive spirit: Martha Stewart, pictured during a promotional event in Miami on December 7, has axed 100 staff from her company

 

Martha, who holds to the motto 'It's a good thing' and is worth an estimated $300million, had been in Florida promoting the December issue of Martha Stewart Living magazine - the company's last-standing publication. 

'Just completed a cooking demo at Macys Aventura mall in Miami. What a great crowd. Delicious brunch recipes from MS Living dec issue,' the entrepreneur tweeted on December 7.

 

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The doyenne of home-making was tweeting about her 'Martha' orchid blooming in time for the holidays and a TV appearance about holiday gift-giving on Thursday - the same day that dozens of staff were being ordered to clear their desks. 

Martha Stewart Living Omnimedia had no comment when contacted by MailOnline on Friday. 

Staff were seen leaving the company's Manhattan offices, many in tears with belongings stuffed in Martha Stewart bags after being escorted out of the building immediately by security guards, the New York Post reported.


The staffing cuts - about 20 per cent of the workforce - are expected to save the company $10million in the next year.

Keeping it sweet: Stewart was in Miami at the weekend promoting her magazine

Keeping it sweet: Stewart was in Miami at the weekend promoting her magazine

Stewart also took a pay cut this year - with the company slashing half a million off her salary to bring it down to $3.5million. 

According to corporate filings for this year's third quarter, total revenues were $33.8million - down from $43.5million in the same quarter in 2012.

The company was the subject of lawsuit from Macy's over licensing with J.C. Penney - forcing it to end a deal with the latter this year.

The knock-on effect was Penney's cut back on advertising in Martha Stewart's magazine and TV shows.

Analysts are predicting further losses for the lifestyle company next year.

In 2004, Stewart went to jail after being charged over the ImClone insider trading scandal.

She launched a comeback on her release the following year and her company showed profits in 2006.

She rejoined the board of Martha Stewart Living Omnimedia in 2011 and became chairman last year.

Martha Stewart Living Omnimedia in Manhattan where staff who got the ax were pictured leaving in tears on Thursday

Martha Stewart Living Omnimedia in Manhattan where staff who got the ax were pictured leaving in tears on Thursday

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She would be a perfect new wife for CEO Romney if he ever got divorced. They clearly have a lot in common no doubt.

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Wretched

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It's called business ..... rest assured, the best and brightest were't fired. Based on the fact that Martha is still employed, I would say that some of the mediocre survived the cut as well .....

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Even though I believe business is business and all, she could have cut her salary for a few weeks so they could keep their jobs atleast until Christmas...

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Never buying her hand towels again.

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Its hard to make money when yiu dont have the inside track on trading

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She sounds like Marie Antoinette, "Let them eat my gourmet Christmas Cookies, it's a good thing".

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Funny a RECYCLING DUDE TAKES THE HELM OF HER COMPANY-- They ought to recycle her old a$$ to clean up that nuclear plant hit by the tsunami in Japan!!!!!! Dump her and her crap over there- they could use her stuff.

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Hey, DUCKSOUP- You slap, I'll hold 'email for ya!!!!!!!!!!!!!!!!! Then we can take them for a long ride to the Pine Barrens here- Push 'em out of the car and make them Walk through the cold, cold, bear and coyote infested woods and swamps! Then they will learn what " hard times are"! God sees what they do, they are riding high now, but not forever!

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Another greedy self centered pug who does not need the money! She has something like 5 or six homes!!!!! I hope and pray she goes bankrupt and ends up homeless!!!!!!!! I was wondering why she was doing PINE BROS. Cough drop commercials!!!! Greedy pig. She is part of what is wrong with our country!!!!!!!!!!!!'

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