AM I NEXT? NO LOVE AT INTERFOR

Vancouver, Canada-based Interfor Corporation, one of the largest lumber producers in the world, has decided to curtail its sawmilling operations in response to eroding market conditions. The curtailment will affect 130 employees at the company's Gilchrist sawmill located in Gilchrist, Oregon with the layoffs to commence in late June 2020.

However, the news is not all bad. Due to the cyclical nature of the new construction and refurbishment industry, the need for high-grade lumber will improve in the future as it always has.

According to a company spokesperson, “We know this is a difficult time for our employees, and curtailing the Gilchrist Division was not a decision we made lightly.”

Considerable uncertainty remains as to the duration and extent of the economic impact and in turn, the magnitude of impact on Interfor’s operations, demand for its products, and financial outlook. However, Interfor is well-positioned for this uncertainty with a strong balance sheet and significant available liquidity.

The Company has taken proactive measures to protect the health of its employees, balance its lumber production with reduced demand, and safeguard its financial position in response to COVID-19. Cash conservation actions have been implemented to significantly reduce non-essential operating expenses and discretionary capital expenditures.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? DANGER: THE TRADITIONAL MEDIA MODEL IS BROKEN

Traditional media is dying as general circulation newspapers and magazines lose their audience to digital platforms that offer immediacy and near-infinite variety. The days of the major programmed radio and television media, including cable are being impacted as consumers select à la carte programming instead of overpaying for unwanted content or hit-or-miss over-produced content.

Even the daily news has given way to a form of infotainment where facts and commentary are mixed and muddled to attract an audience.

Each and everyday consumers are cutting the cord.

Advertising has also changed from the analog to the digital realm and the largest platforms are awash in cash. Unfortunately, it is far easier to jigger audience numbers and artificially inflate the audience of digital media which is now impacting those who purport to sell "verified" eyeballs.

We are entering an era of voice-controlled smartphones and dumb televisions which simply display anything that is cast to them over a fast internet connection.

The old problems of program discovery, separating desired programs from background noise is still problematical.

However, one of the biggest changes is in consumer habits, with a very large segment of the audience preferring to split their attention between content and performing another task. Audiobooks that require a certain amount of concentration are giving was to easy-to-listen summaries and podcasts.

Even Instagram and YouTube influencers are making serious money without the need for corporate involvement or a major investment in content production infrastructure. Witness podcaster Joe Rogan's exclusive contract with Sweden-based Spotify, the music streaming service, which could be worth up to $100 million depending on Rogan's performance metrics.

While corporate interests are trying to develop proprietary platforms and capture valuable content, the game has changed and employees of traditional media channels and content producers should maintain their vigilance lest they are disintermediated from their personal income stream.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT WW/WEIGHT WATCHERS (02/18/25)

FEBRUARY 18, 2025 — BIG TROUBLE AHEAD?

WW International and advisors to its lenders have reportedly taken a step toward discussing potentially restructuring the company’s debt as an alternative to bankruptcy.

As contained within an SEC 8 filing, “We continue to actively evaluate our capital structure and intend to explore transactions to strengthen our balance sheet and increase our financial flexibility. We look forward to engaging with our lenders and bondholders in the coming months.”

It appears that the key obstacle to profitability is the widespread use of weight loss drugs which produce dramatic results in short time periods.

MAY 27, 2020 — Original post…

New York, New York-based WW, formerly Weightwatchers, a company dedicated to assisting individuals in losing weight and improving their lifestyle, is continuing to restructure the company to broaden its focus from weight loss to lifestyle and wellness as well as reposition the company as a technology-based enterprise.

The company recently conducted a mass layoff, estimated by some, to include thousands of part-time and full-time employees. The company acknowledges the reduction in force but refuses to disclose further details. What was different was the extent to which the company used voice-only Zoom calls to inform the employees of the bad news.

While WW CEO Nick Hotchkin declined to state the number of employees laid off or the number of employees terminated by Zoom calls, he did comment, “It wasn’t practical to have all of the conversations be one on one. Even as we start a phased reopening of some of our locations, we know our business will continue to be impacted by this crisis. That was the context in which we decided to restructure our studio business, and make substantial changes to our corporate structure and workforce.”

Prior to the Chinese Virus pandemic which curtailed significant customer interaction with nation-wide group leaders, the company was attempting to position itself as a technology company with a content-rich platform and technology-enabled interaction with its client base. The company has previously announced a target of $100 million in cost savings that included a reduction in force, salary cuts, and a reorganization of a labor-intensive operation to one that benefited from increased automation.

According to the company's earnings call to investors...

"WW is a technology company delivering a human experience. Our transformation from primarily offline to a digitally enabled experience has been underway for several years, with all members enjoying the tools, features, content and connect community available in the WW app. In mid-March to ensure the health and safety of our members and our coaches, we proactively pivoted from in-person workshops for our global studio members, which represent approximately 25% of our overall membership to an entirely virtual experience. Over six days sprint, our studio operations, technology and digital product teams developed a solution for our coaches to host their workshops virtually. We trained over 14,000 coaches and guides globally for virtual workshop, and created Connect groups for each studio, so that members can continue to engage with each other, inside the WW ecosystem in between workshop. The move to virtual workshops has accelerated our digital first strategy. While face-to-face experiences will always be a core part of WW, we are strategically repositioning our studio business to have a smaller real estate footprint with fewer locations."

The company has struggled in recent years from declining participation, changing consumer tastes, and the proliferation of free and engaging diet and wellness apps.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?