The Gund Co. Maintains 18 Percent Growth With No Layoffs
Manufacturing operators can look to the firm's 75-year track record for an alternative to cyclical staff reductions.
Updated on Oct. 23, 2026 in Jobs — General
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St. Louis-based The Gund Co. marked its 75th year of operation in 2026 without a single layoff. The manufacturer, which employs 1,300 people across global sites, uses a transparent management model that has drawn interest from hundreds of other firms.
Why it matters
The company maintains that workforce reductions are a failure of executive management rather than a market necessity. By prioritizing staff stability, the firm achieved 18 percent annual growth over the last decade and doubled profit margins.
The firm reports $400 million in annual sales with an 18 percent annual growth rate over the last decade. Its 1,300 employees experience a turnover rate of less than 10 percent, while starting factory wages remain between $55,000 and $65,000 annually.
The players
The Gund Co.
A St. Louis-based manufacturer with international operations that maintains a no-layoff policy.
Steve Gund
An executive who joined the family-led company full-time in the early 1990s.
Rich Gund
An executive who joined the family-led company full-time in the early 1990s.
The details
Operations center on a 12-step management plan requiring leaders to post financial results openly for the factory floor. Employees manage operational efficiency through a red-card system where reported concerns remain visible until a supervisor provides a documented resolution. This high-visibility feedback loop ensures that process bottlenecks are identified and corrected by the personnel closest to the work.
Timeline
1951: The Gund Co. was founded.
Early 1990s: Steve and Rich Gund joined the company full-time.
2009: The company implemented an employee stock ownership plan.
2015: The current management strategy was established.
2026: The Gund Co. marked 75 years of operation.
Market Landscape
The firm serves as a rare manufacturing benchmark that contradicts the industry-standard reliance on periodic layoffs. Its model stands as a departure from the typical cyclical adjustments used by competitors to manage labor costs during market fluctuations.
Operators should evaluate whether the transparency of the 12-step management model and red-card system could reduce turnover in their own plants. Lowering churn through direct financial feedback and immediate issue resolution offers a competitive alternative to relying on workforce contraction.
The takeaway
The Gund Co. proves that long-term stability can produce consistent 18 percent annual growth when management treats layoffs as a failure of planning. Operators should track their internal turnover rates against the firm's 10 percent benchmark to gauge the effectiveness of their own retention programs.
Further reading
Learn more about local hiring trends and management strategies in our Jobs — General section.
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