Office Depot closing stores, beginning layoffs amid restructuring
Office Depot unveiled a restructuring plan that will see stores closing, distribution centers close or be consolidated, and 13,100 employees get laid off over the next three years.
The retailer with a breadth of store brand products in paper, supplies, journals and more is looking to shift its focus less on retail and more toward its B2B solutions and IT services business units. Although, in that vision, it could be that its store brand products could be the primary focus of a smaller retail business.
The restructuring plans, part of an 8-K filing with the Securities and Exchange Commission on May 14, Office Depot expects to incur incremental restructuring charges of up to approximately $543 million, $194 million of which will result in cash expenditures by the end of 2023. Among these expenditures include $30 million for supply chain capital investments and $21 million for IT capital investments.
See more on Office Depot’s plans in this article by sister publication RIS.