UNION (dpa-AFX) - Bed Bath & Beyond Inc. said that it will eliminate about 2,800 jobs across its corporate headquarters and retail banner stores, as part of an organization realignment.
'Saying goodbye to colleagues and friends is incredibly difficult, but this component of our comprehensive restructuring program is critical to rebuild the foundation of our business....' said Mark Tritton, President and CEO of the company.
The New Jersey-based home goods retailer expects to incur pre-tax cash restructuring charges of about $25 million in fiscal 2020, primarily for severance and related costs, which will be expensed in the second quarter of fiscal 2020.
The retailer expects that the workforce reduction will deliver about $150 million in annualized savings.
The company's overall restructuring plan is expected to deliver annualized earnings before interest, income taxes, depreciation and amortization or EBITDA between about $250 million and $350 million, excluding one-time costs, over the next two-to-three years.
Last month, the company said it would close around 200 mostly Bed Bath & Beyond stores over the next two years amid continuing struggles with Covid-19. The retailer, which reported a wider-than-expected loss in its first quarter with sharply lower sales, then said the move was part of its plans to right-size its real estate portfolio and to cut costs.
Copyright RTT News/dpa-AFX
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