As per the news on BizJounal, The Home Depot Company has decided to lay off around 1,300 employees. Not only that, it will close around 15 stores in the USA, which are said to be underperforming.
It is also learnt that the expansion plans for opening new stores have been kept aside for the moment.
The home-improvement retailer will close stores in the states of Indiana, Kentucky, Louisiana, Minnesota, New Jersey, New York, North Dakota, Ohio, Vermont and Wisconsin. However, the no. of stores being closed represents less than 1 percent of the company's network.
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The company says the move will lead to $586 million in charges, $547 million of which will be recognized in its first fiscal quarter that ends in May.
Home Depot which is listed on NYSE with the ticker symbol HD, says the revised expansion plan and store closures should improve free cash flow, provide stronger returns for the company and allow it to invest in existing stores.
For the current fiscal year, Home Depot said it plans to open 55 stores, including 36 in the United States. Starting in its 2009 fiscal year, Home Depot plans to increase square footage by about 1.5 percent per year.
However, the company will no longer open 50 U.S. stores that hade been in its pipeline.
| Hope that the 1300 employees who will be laid-off from Home Depot should find alternate means of Jobs. | Table of Contents |
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