Second Round of Layoffs at Publishers Clearing House Will Hit NYC Office
The direct-to-consumer company is laying off 27 percent of its employees even as its vaunted Prize Patrol gets ready to hand out a $1.25 million check to a lucky contest winner next month.
| 27 Jan 2025 | 04:17
The Prize Patrol from Publishers Clearing House is famous for swooping down on unsuspecting winners of its sweepstakes contests with hefty winning checks. The company has faced scrutiny from the Federal Trade Commission over what the agency said were deceptive tactics to get consumers to enter the contest. (
)
Publishers Clearing House still plans to hand out $1.25 million in prize money next month even as it hands out pink slips to 50 employees, including a handful in its Chelsea office.
News of the troubled sweepstakes company’s second round of layoffs in less than a year was contained in a Worker Adjustment and Retraining Notification posted on Jan. 24 in Publishers Clearing House, LLC, which said that 50 of the company’s 184 current employees will be laid off.
The layoff will hit the company’s Long Island HQ in Jericho, NY, where 46 people will be laid off, and its small New York City office at 7 W. 22nd St., where four employees will be impacted.
The merchandise- and magazine-selling company underwent a previous round of layoffs last April, affecting 156 workers.
The recent January WARN states the reason for layoffs is “economic,” an extension of the filing in April, when the company’s reasoning was due to “wind-down and eventual closure of the commerce line of business.”
Known for its high-value sweepstakes, PCH is a direct-to-consumer company that curates digital-entertainment opportunities and offers. It was founded in 1953 by Harold and LuEsther Mertz to offer discounted magazine subscriptions.
Andrew Goldberg, the longtime president and CEO, could not be reached for comment. The company is famous for its Prize Patrol, which surprises winners on their doorstep while TV cameras are rolling with oversized checks in amounts ranging from $1 million to more than $10 million. The current sweepstakes is for a $1.25 million prize that is set to be awarded on Feb. 28.
The company, once famous for its stamp sheets offering steep discounts to leading magazines, began pushing into the digital realm in the 1990s.
With the rise in digital activity and readership, PCH said that the layoffs were “a strategic response to the reality of heightened postal, shipping and supply-chain costs along with the ongoing challenges that emerged from the post-pandemic world.”
Company executives did not return emails via Linkedin to Straus News.
PCH said in the past that layoffs will not impact its sweepstakes, according to Newsday, suggesting that the company will continue to prioritize its prize winners through the current round of cuts that take effect in April.
The 50 employees who are being laid off as of April 18 make up about 27 percent of the company’s remaining workforce.
There has not been public confirmation whether PCH will buy a Super Bowl ad, but the company has platformed Prize Control during the game in the past. The average cost of a 30-second commercial in 2024 was $7 million, which would add a significant amount to the company’s current expenses.
In the past, PCH has faced controversy for misconduct. The Federal Trade Commission filed a lawsuit against the company in June 2023, claiming it used deceptive language in its sweepstake entries. PCH settled with the FTC for $18.5 million, offering refunds to consumers.
“A strategic response to the reality of heightened postal, shipping and supply-chain costs along with the ongoing challenges that emerged from the post-pandemic world.” Statement from Publishers Clearing House.