Integrated QVC-HSN, Dubbed QXH, Means 2,000 Layoffs

When QVC’s parent company acquired HSN last year, everyone knew it would mean massive changes and eventually, massive layoffs. Well, that other shoe dropped Wednesday. We’re still not sure where “Miracle Mop” creator Joy Mangano ends up in all of this.

Here is the lengthy press release:

http://ir.qurateretail.com/news-releases/news-release-details/qurate-retail-group-announces-initiatives-deliver-long-term

So no, the QVC and HSN TV networks will not be merged into one. But they will be placed under one business unit, called QXH. Catchy, huh?

The new unit was part of Qurate Retail Group’s announcement about a massive restructuring that calls for integrating not only QVC and HSN’s fulfillment centers but also its buying organizations.

The end result? Some 2,000 people will be out of jobs, about 350 coming mainly from HSN’s HQ in St. Petersburg, Fla., which will remain open, and the rest from three fulfillment centers that Qurate will be closing.

The company also plans to lease space in a new warehouse facility, a honking 1- million-square-foot logistics center in Bethlehem, Penn. There will be 1,200 to 1,500 new jobs there, if you are looking for a silver lining.

Here’s the send-off that Mike George, Qurate president and CEO, gave to workers losing their jobs, including some folks who apparently had worked at the home shopping networks for 25 years.

“Today’s initiatives are the next step in our ongoing review of how to best continue the integration of HSN and QVC,” George said in a statement.

“With a focus on driving digital transformation, these efforts will extend our leadership in social, digital, and video commerce. I want to thank the many dedicated team members who will be impacted by these changes. Their commitment to HSN, QVC, and our customers, in some cases spanning 25 years or more, has been instrumental to our success. Our excitement today over the positive impact of these changes is tempered by the loss of many valued team members.”

The consolidation will result in streamlining that “will ensure an aligned approach to the U.S. market and better leverage the combined scale and resources of the two organizations, while still maintaining the unique identity of each brand and the St. Petersburg, Fla., campus for HSN,” Qurate said in its press release.

“The QXH name reflects the continued importance of the QVC and HSN brands, the multiplying power of bringing these brands together to maximize performance in the US market, and the engaging customer experiences we will offer across our five HSN, QVC, and Beauty iQ networks and digital properties,” George said.

OK, know we get it: QVC times HSN = QXH.

There will no be only one buying team for HSN and QVC, which to us seems it will make it hard to keep distinct identities for each network.

“HSN and QVC US buying organizations are being combined and structured around seven strategic category groups: Apparel, Accessories and Jewelry, Beauty, Kitchen Electronics and Cookware, Home Innovations, Home Style, and Consumer Electronics,” Qurate’s press release said. “Category leaders will be responsible for developing and driving strategies to maximize growth in the US market, across both the QVC and HSN platforms.”

The release goes on, “This integrated buying organization is expected to provide several benefits, including: increased speed to market with the best brands, products, ideas and entrepreneurs; optimized product assortments across QXH’s five US networks and multiple web and social platforms to maximize customer choice; a more aggressive pursuit of white space opportunities; and better alignment with our vendor partners.”

As for merging fulfillment operations, Qurate said it will be far more efficient and mean we customers will get our packages sooner. Right now Qurate operates four HSN and five QVC fulfillment centers, with many of them dedicated to specific categories, such as hard goods or apparel.

Over the next three to four years Qurate plans to combine HSN and QVC fulfillment centers so that they carry “the full product assortments” of both brands, in order to combine shipments to the customer and lower operating expenses.

“Once completed, the integrated fulfillment network is expected to: increase average delivery speeds to customers by two days; enable more items to be consolidated into single shipments to improve customer convenience; and deliver significant savings in freight and fixed costs,” Qurate said.

The press release also has possible ominous news about Ingenious Designs, inventor Joy Mangano’s company, which is part of HSN and home to the Miracle Mop and Huggable Hangers.

“HSN is closing its Ingenious Designs facility in Long Island, NY, shifting the design and sourcing of those product lines to QRG’s (Qurate’s) in-house design and sourcing team,” the parent company said.

Does that mean that Mangano is losing her own design team, and control of her company? Will she be staying on-board?

There are a couple of winners in this QVC-HSN scenario.

Mary Campbell, chief merchandising officer for Qurate and chief commerce officer for QVC U.S., will be responsible for QXH merchandising, marketing, brand and digital strategy and the QVC U.S. digital, content and broadcast operations. She will have primary responsibility for the development and growth of the QVC brand.

HSN President Mike Fitzharris who will be responsible for QXH video platform expansion and distribution and the HSN digital, content and broadcast operations. He will have primary responsibility for the development and growth of the HSN brand and oversight of the St. Petersburg campus.

They will both report to George.

QVC U.S. President Steve Hofmann is being kicked to the curb. His position is being eliminated, and his last day is Friday.

To sum up, some of us were surprised to see veteran QVC jewelry vendor Judith Ripka appear on HSN a few days ago. Expect to see a lot more of that QVC-HSN crossovers.

As someone who has been laid off twice, with the first time more devastating than we could ever explain to you, we certainly feel for those who are getting pink slips. But we lost our jobs during the Great Recession, the worse economic period since the Great Depression.

The U.S. economy is booming now, with unemployment at record lows, so we know you HSN and QVC folks will find new jobs a lot faster than we did. We wish you the best.

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12 Responses to “Integrated QVC-HSN, Dubbed QXH, Means 2,000 Layoffs”

  1. pussmom212 Says:

    Have missed your posts,hope all is well

    On Thu, Oct 18, 2018, 12:36 AM Homeshoppingista’s Blog By Linda Moss wrote:

    > homeshoppingista posted: “When QVC’s parent company acquired HSN last > year, everyone knew it would mean massive changes and eventually, massive > layoffs. Well, that other shoe dropped Wednesday. No, the QVC and HSN TV > networks will not be merged into one. But they will be placed u” >

  2. Barbara Says:

    It’s sad to hear so many HSN employees are being laid off. Linda, I hope you’re right and they are able to find other jobs.

    Doesn’t look too good for Joy Mangano, does it? Speaking of ominous developments, I don’t like the idea of the “integrated buying organization.” QVC programming has already gotten pretty boring because they spend so much air time pushing the same products, such as several hours a day on vacuum cleaners or mattresses or food mixers. If they eliminate some of the HSN products that were different, both channels will be boring.

  3. homeshoppingista Says:

    Computer woes kept me from posting. I am back.

  4. Marilyn Says:

    Sad to hear of all the layoffs. Hopefully the employees can try to get new jobs in the new plants.
    Marilyn

  5. Queen Celeste Says:

    Nice to see you back, MIss Moss. Sad about the many layoffs, and I hope the employees all find jobs. It will be interesting to watch the online changes to come.

    For the time in ages tried to order an item from QVC. When I tried to check out online got a message saying there is no mail delivery service to my area. Huh? Then called to order and the sleepy-sounding rep said the item was out of stock. Will stick with Evine!

  6. Jerri Says:

    Good to see your post, Linda. Hope you are well and work is going well.
    This merger has had failure written all over it from the beginning. Although I don’t shop anymore, it has been interesting to tune in occasionally. I watch HSN a lot more; I’ve never cared much for QVC. But I did notice Ripka on HSN, looking like a fish out of water. Nothing against her, but she belongs on QVC. This crossover thing will make these channels even more boring, and less watchable, as mentioned in a previous post.
    Mostly, I’m sad for those who lost their jobs as a result of this ridiculous merger. This whole thing was unnecessary and will be the end of these channels, not a new beginning. For those of you who lost jobs, I wish you the best and hope you find new employment soon.
    This is one more reason to boycott buying from these channels, and I’m glad I did. Home shopping is on its way out…at least buying from TV channels. Pretty soon they won’t even be worth watching for entertainment.

  7. DJ Says:

    Joy Mangano holds a big chunk of HSN, and I’m sure this will affect her in some way. She has a grating TV personality, but she is self-made and has worked hard to get where she is. Luckily she has made enough money that she’ll be ok.
    The US economy is still struggling in many areas, so I feel bad for those home shopping employees who lost their jobs. Hopefully they are in areas with more work and find new jobs quickly.
    Bottom line: the merger of QVC and HSN has made many changes, and most of them are not appealing to the viewers/buyers. Many of us like things the way we’re used to seeing them. Change can be good but both HSN and QVC have been making some unwanted changes. This merger is a huge mistake.

  8. Larry Says:

    The fundamental fact is that Mike George is not a retailer he is basically a consultant who has done nothing in his life but failed. He failed at Dell and failed to innovate at QVC. Who pays the price? Not multi-millionaire Mikey no he just suckles up to the mother ship and lays off as many folks he can while collecting his bonus. Oh and get those older folks they suck up healthcare don’t they Mike, right out of McKinsey 101. Aw shucks your just a good ol boy spreading those Q Values around, good job buddy. The company is toast anyway your lack of innovation and ability has basically killed this baby off. Merging with HSN buys you a few years, oh maybe until you retire and then it can sink anyway, right Mikey…

  9. HSN’s Shannon Fox’s Nails with Bellezza Jewelry! (10/18/2018) – TV Nail Files Says:

    […] Home Shoppingista — “Integrated QVC-HSN, Dubbed QXH, Means 2,000 Layoffs” (10/18/2… […]

  10. Evie Says:

    Everyone else said it better than I could. This merge was a huge disappointment. Mostly, I feel so, so badly for those who lost their jobs because of it. And I can’t stand, and have zero respect for Mike George. As another poster said, this could be the beginning of the end for QVC and HSN. They have nothing to offer anymore, anyway; they’d be no loss to me!

  11. Dee Says:

    I happened to tune in when J Ripka was on HSN, and although I wasn’t shocked to see her on there, her visit seemed a little off. As Jerri mentioned, we’re all used to seeing her on QVC. I am against this merge of HSN and QVC and mostly because good people lost jobs because of it.
    The #1 and #2 shopping channels have been getting less and less popular, and I honestly don’t think this will help. I liked HSN as HSN, and QVC as QVC; not HSQVCN. I actually preferred HSN, especially some years back before they brought in these awful changes. The new hosts are not appealing, and the established ones have grown desperate and stale, with a few exceptions. Say what you will but Evine, although not what it used to be, is fresher and more watchable than QVC and HSN. Better products and price values, too. But, I am really cutting back, and may end up just watching for the entertainment factor. Home shopping has changed too much for me.

  12. Toni Says:

    I just commented on the Jennifer Stallone blog, so this is kind of a continuation of that.
    I was saying how HSN has lost quality control. Customer service, as well. Back in 1999 when I first started watching, if you called CS they were friendly, helpful, and glad to have you for a customer. That started going bad about 2004 or so and has been rolling down hill ever since.
    I hardly ever watch(ed) QVC; their prices were too high and I didn’t care for their sets or presentations. I did and still do like many of the hosts, however.
    Add this merger to the fact that both channels aren’t even shadows of their former selves, and you have a recipe for failure. It’s too late to change now, and I am looking at HSN in my rearview mirror. Evine has some of HSN’s former vendors, and they’re trying to freshen their presentations. I like the new studio; hope it’s permanent and full time. I liked it better as Shop NBC, but at least they’re trying to do something better. With Stallone’s exit my HSN days are now behind me.

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