Retailer Pier 1 to cut 175 jobs |
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Thu, 29 Mar 2007 21:09
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FORT WORTH, Texas (AP) - Struggling home-accessories retailer Pier 1 Imports Inc. said Thursday it would cut 175 positions, over half of them at its Fort Worth headquarters.The company said it expects the cuts to cause about $5 million in severance costs in the first quarter of the year but eventually reduce spending by $17 million per year, or nearly $100,000 per position.The cuts appeared to represent less than 1 percent of the company's work force. Pier 1 said last year that it had 18,200 employees, although 9,700 were part-time.About 75 of the jobs to be eliminated are field administration positions and 100 are at headquarters.Chief Executive Alex W. Smith said the retailer can return to profitability by becoming leaner and more efficient. He said savings from the layoffs would be reinvested in key areas of the business.Pier 1 operates about 1,200 stores under the Pier 1 Imports and Pier 1 Kids names. It has been struggling with falling same-store sales and has tried several fixes including bargain pricing, contemporary furniture and more marketing. None have snapped the slump.Last year, the company hired financial advisers to help it consider options, often a precursor to a sale. Last month, it hired Smith, a former TJX Cos. Inc. executive, to replace longtime CEO Marvin J. Girouard.Shares of Pier 1 fell 2 cents, to $6.78 in afternoon trading on the New York Stock Exchange. They have traded in a 52-week range from $5.61 to $13.25.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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