From Home Furnishing Business
Pier 1 to Lay Off 175 People
By Home Furnishings Business in Furniture Retailing on March 2007
Specialty retailer Pier 1 Imports is laying off 175 positions in a cost-cutting measure.
The move will impact 75 administration positions in the companys field offices and 100 jobs in its Fort Worth, Texas, headquarters.
We know we can return our company to profitability and to that end, we have established clear business priorities, said Alex Smith, president and chief executive officer. One of those priorities is to make the organization leaner, simpler and more efficient in every way. The realignment of our field and home office administrative functions will create a more responsive, cost-effective structure that will improve long-term operating efficiency as well as provide savings that can be reinvested into key areas of our business.
Smith said the company is assisting people impacted by the lay offs.
During the first quarter of fiscal 2008, the retailer expects to incur severance and outplacement costs related to this realignment of about $5 million. Pier 1 estimates that the move will generate annualized savings of about $17 million.