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Life Time Fitness HQ is shedding 100 jobs
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Life Time Fitness Inc. is cutting 12 percent of the jobs at its headquarters in Chanhassen -- the first layoffs in its 16-year history -- as it scales back expansion plans in the face of the economic downturn.
The fitness club company's headquarters staff of slightly more than 800 will decline by 100, most by layoffs and the rest by not filling open positions, company spokesman Jason Thunstrom said Tuesday.
Those lost jobs will be mostly in the areas of architecture, construction, real estate and development, he said.
The company began notifying employees on Monday that they were being let go immediately, Thunstrom said. Each employee will receive a severance package determined by length of time with the company.
Life Time recently said it planned to open six new fitness centers in 2009, down from an initial goal of 11. It plans to open six centers in 2010.
"These are tough decisions," Thunstrom said of the layoffs.
At the same time, he said, the company remains profitable and "we believe in our [business] model."
Late last month, the company said it still expects revenue and earnings to grow this year, although by less than it had previously predicted.
As of Nov. 3, Life Time Fitness was operating 79 centers in Minnesota and 16 other states. The company said it employed 15,000 people at the end of last year, about 9,500 of them part time.
Life Time was founded in 1992 and went public in an initial offering in 2004. On Tuesday, Life Time stock reached a 52-week low of $10.93 before closing at $11.48, down 33 cents.
Paul Walsh • 612-673-4482
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