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Women's apparel retailer Talbots cuts corporate jobs
06 Jun '08
2 min read
The Talbots Inc announced that as part of its strategic long-range plan to streamline operations and rationalize its cost structure, it is reducing its corporate headcount, across multiple locations and at all levels, by approximately 9%.
The Company expects this action to result in estimated annualized cost savings of approximately $14 million, which contributes to the Company's goal to reduce its cost structure by a minimum of $100 million by the end of fiscal 2009 (as announced on February 6, 2008).
Net expense associated with the reduction, which is primarily for severance and severance benefits as well as related professional consulting fees, is expected to total approximately $5.9 million.
Of this, approximately $2.1 million of net pre-tax expense was recorded in the first quarter of fiscal 2008, which was included in the Company's restructuring charge as detailed in its first quarter 2008 results announced on May 21, 2008.
The Company expects to record the additional net pre-tax expense of approximately $3.8 million in connection with this action in the second quarter of fiscal 2008.
Trudy F. Sullivan, President and Chief Executive Officer of The Talbots, Inc., said, "A key finding of our strategic review completed in the first quarter of 2008 was the need to realign and streamline internal Company functions to enable the successful execution of our long-range plan.
We therefore are examining all areas of our business to maximize efficiency and drive overall improved productivity. We are making excellent progress in achieving all of the objectives laid out in our strategic long-range plan and are firmly on track to restore profitability from our ongoing core operations and deliver enhanced shareholder value beginning in 2008."
The Company expects this action to result in estimated annualized cost savings of approximately $14 million, which contributes to the Company's goal to reduce its cost structure by a minimum of $100 million by the end of fiscal 2009 (as announced on February 6, 2008).
Net expense associated with the reduction, which is primarily for severance and severance benefits as well as related professional consulting fees, is expected to total approximately $5.9 million.
Of this, approximately $2.1 million of net pre-tax expense was recorded in the first quarter of fiscal 2008, which was included in the Company's restructuring charge as detailed in its first quarter 2008 results announced on May 21, 2008.
The Company expects to record the additional net pre-tax expense of approximately $3.8 million in connection with this action in the second quarter of fiscal 2008.
Trudy F. Sullivan, President and Chief Executive Officer of The Talbots, Inc., said, "A key finding of our strategic review completed in the first quarter of 2008 was the need to realign and streamline internal Company functions to enable the successful execution of our long-range plan.
We therefore are examining all areas of our business to maximize efficiency and drive overall improved productivity. We are making excellent progress in achieving all of the objectives laid out in our strategic long-range plan and are firmly on track to restore profitability from our ongoing core operations and deliver enhanced shareholder value beginning in 2008."
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