Dollar General is the latest retailer to announce its paring down the home office ranks with plans to eliminate 255 positions in a corporate restructuring plan. The jobs elimination was effective immediately Tuesday (Oct. 13), according to the company release.
“Over the last several months, we have taken a hard look at our cost structure and are streamlining our support functions to improve our financial flexibility while positioning us to better serve our customers and to capitalize on long-term growth opportunities. This restructuring should allow us to continue strengthening our market leadership position and deliver long-term value for our shareholders,” said Todd Vasos, CEO of Dollar General.
The Goodlettsville, Tenn.-based company projects that it will incur a pre-tax cash expense of approximately $7 million in the third quarter of 2015 relating to this restructuring for one-time severance-related benefits.
The restructuring includes approximately 115 vacant positions. All impacted employees have been notified. Positions at the store level will not be impacted by this restructuring.
Looking ahead to fiscal 2016, Dollar General expects to continue its expense control and reduction initiative by implementing a more rigorous budgeting process that will target cost savings in specific budget categories.
Dollar General plans to report its third quarter 2015 financial results prior to the market open on Dec. 3.