OfficeMax slashes 245 jobs in North America to cut operating expenses
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November , 2008
NEW YORK - OfficeMax Inc. said Thursday it was cutting 245 jobs from its North American operations as part of a move to cut $20 million in operating expenses from the struggling retailer's budget.
The decision affects corporate and field management positions in the office supply chain, which has about 36,000 employees worldwide.
The suburban Chicago-based retailer expects severance costs related to the job cuts of $8.5 million.
"The decision to reduce staff is difficult but is a necessary and realistic response to the environment we are operating in," Chairman and Chief Executive Sam Duncan said in a statement.
Earlier this month, OfficeMax said it lost more than $400 million in the third quarter as sales fell and a hefty charge weighed down results.
Excluding one-time items, the company earned $28 million, or 36 cents per share. But the struggling retailer assured investors that its finances were solid.
Still, the company said same-store sales _ an important retail industry metric_ fell 11.1 percent and cautioned it expected "significant" sales declines in the fourth quarter because of a tough economy and weak holiday season.
OfficeMax shares climbed $1.07, or 23 percent, to $5.70 in trading Thursday.
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