Restoration Hardware Cutting 100 Employees

August 14, 2007  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on August 2007 Restoration Hardware said Tuesday that it is eliminating about 100 positions at its corporate headquarters in Corte Madera, Calif.

The company’s statement said the move was in response to challenging market conditions in the home furnishings sector. The move is expected to save the company $3.5 million after severance and outplacement charges for the balance of the year, and about $9 million annually.

“This is a difficult but necessary decision that will enable us to operate more efficiently in the current environment,” said Gary Friedman, president and chief executive officer. “We believe the cost-cutting actions we have announced this year, combined with our strategic growth and supply chain initiatives, will drive improved sales and profitability in the second half of 2007 compared to a year ago.”

Friedman said the company is committed to executing strategies to drive its growth and that it plans to continue with its brand extensions of Restoration Hardware Bed & Bath, Restoration Hardware Baby & Child and Restoration Hardware Trade.

“Despite the challenging circumstances we’re facing today, our team is focused and committed; we’re positioning the business to achieve our long-term revenue and operating margin goals,” he said.

In addition to its catalog and online business, Restoration Hardware has 102 retail stores and eight outlet stores in 30 states, the District of Columbia and Canada.