In the wake of corporate layoffs at Wal-Mart Stores Inc. and Whole Foods Market, Dollar General Corp. has followed suit with a plan to eliminate 255 positions in its corporate support office as part of an initiative to improve efficiencies and reduce expenses.
The company said most of the layoffs take effect immediately.
“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," said Todd Vasos, CEO of Dollar General. "This restructuring should allow us to continue strengthening our market leadership position and deliver long-term value for our shareholders.”
Goodlettsville, Tenn.-based Dollar General, which operates 12,200 stores in 43 states, projects it will incur a pre-tax cash expense of approximately $7 million in the third quarter of 2015 relating to the restructuring for one-time severance-related benefits.
The restructuring includes approximately 115 vacant support center jobs, while store-level positions will not be affected, according to the company.