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Goodwill cuts staff, closes store By JONEL ALECCIA Citing lower-than-expected revenues, Southern Oregon Goodwill has cut staff and closed a retail store in Phoenix and a temporary agency office in Douglas County. The move idles eight employees, including six administrative staff and two retail positions, said Russ Levin, development director. It also shuts down the Something Special antiques and collectibles retail outlet in Phoenix and closes the Willpower office in Douglas County. The cuts follow a recent period of expansion in which the agency grew to serve some 5,000 disabled clients annually. "The layoffs were very difficult decisions to make and were only done as a last resort, combined with other expense-reducing efforts," Goodwill President Gail Byrne said. A 30 percent drop in income from temporary services and a 5 percent decline in retail sales are to blame for the cuts, which aim to compensate for an anticipated $200,000 shortfall in the first half of the agency's fiscal year, which begins in January. Goodwill of Southern Oregon has an annual budget of about $11 million. "When we get to the six-month point and we're seeing a slight downturn, we have to make sure we run a tight ship," said Levin. The agency also plans to trim travel and energy expenses where possible, he added. Willpower, which places disabled employees in temporary positions, has borne the brunt of a slowing economy, Levin said. "Temporary services is like the canary in the coal mine" for economic conditions, Levin added. Retail sales from 15 stores in four counties total some $400,000 a month, about half the agency's annual income, Levin said. The drop in sales coincides with declines reported in traditional retail outlets, he added. Inventory from the Something Special store at 507 N. Main St., Phoenix, will be transferred to a new section at Goodwill's flagship store at 1241 S. Riverside Ave. Started in 1967, Goodwill of Southern Oregon serves a seven-county area in Oregon and Northern California. The agency provides jobs and job training services for disabled people and those on welfare. It also collects, processes and resells donations of clothing and household goods. Last year, the local agency reported 195,000 individual donations and 700,000 retail sales. Byrne and Levin characterized the cuts and closures as a temporary setback. The agency recently hired Levin to design a fund-raising strategy. That effort, combined with revenue from programs set to begin July 1, should allow the agency to end the year in the black. "After nearly 35 years of providing services to Southern Oregon and Northern California, we have been through things like this before," Byrne said. "We've gained a lot of experience and resiliency." Reach reporter JoNel Aleccia at 776-4465 or at [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.