DOW JONES NEWSWIRES OfficeMax Inc. (OMX) will eliminate 245 corporate and field-management positions in a move that the company expects will save about $20 million as it continues efforts to cut costs.
Last week, the No. 3 office-supply retailer reported that it swung to a third-quarter loss amid investment write-downs related to Lehman Brothers Holdings Inc. (LEHMQ), along with slumping sales and margins. At the time, the company said access to capital remains solid as it continues with its turnaround plans.
OfficeMax has been struggling this year, along with the rest of the retail sector, as sales dropped along with consumer spending. The move to eliminate positions comes after the company had announced it did not expect net new retail-store growth in 2009 and said it would delay its store-remodeling program until economic conditions improved.
Chairman and Chief Executive Sam Duncan said the job cuts, which will cost the company about $8.5 million in severance-related costs, would help OfficeMax sustain long-term growth.
Shares of OfficeMax ended the regular session up 23% to $5.70 and were unchanged in after-hours trading.
-By Tess Stynes and John Kell; Dow Jones Newswires 201-938-2473; tess.stynes@dowjones.com
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(END) Dow Jones Newswires
November 13, 2008 17:50 ET (22:50 GMT)

Publié le 13 novembre 2008 Copyright © 2008 Dowjones