Credit Card Defaults Hit QVC

QVC, the home shopping network, has announced that they will be laying off 910 workers over the next 14 months. A reader who would like to remain anonymous, described the layoff process in an email to Consumerist.

As I understand it, security escorted each ex-worker back to his/her desk, where they collected their keys and pocketbook, etc. They were not allowed to get anything else, and must return at a later time when the building is primarily empty to collect the rest of their belongings.

We suppose that’s how it goes when you work in a huge vat of jewelry.

The layoffs are being blamed on QVC’s credit card division, which is experiencing more defaults.

In late October, Liberty Media said third-quarter profits dropped at its QVC home-shopping unit as the credit crunch slowed consumer spending and more customers missed payments on QVC-issued credit cards.

Some 27 percent of QVC sales are paid for with the company-issued credit cards, George said.

“People are struggling,” [Mike George, QVC’s president and CEO] said. “QVC will be more careful, more conservative when opening up new Q-Card accounts.”

QVC to lay off 910 [Daily Local]