Office Depot to Eliminate About 1,100 Jobs in European Division

[Anonymous]

 Office Depot to Eliminate About 1,100 Jobs in European Division
By Nick Turner

Office Depot Inc. (ODP) will eliminate about 1,100 European jobs as part of an effort to focus on business channels rather than geographic markets, aiming to save $90 million a year by the end of 2016.

The job cuts will result in restructuring charges of about $120 million, with $112 million taking the form of cash expenses in 2014 and 2015, Office Depot said today in a regulatory filing. The total excludes an additional 300 jobs that the company had already eliminated.

“The restructuring plan includes the creation of centralized and standardized processes that operate across Europe,” the Boca Raton, Florida-based company said.

Office Depot is streamlining its operations as it copes with sluggish retail demand and a shift to e-commerce. The chain merged with OfficeMax Inc. last year, and some analysts have pushed for more consolidation in the industry. Staples Inc. (SPLS) should consider buying Office Depot, Credit Suisse Group AG analyst Gary Balter said last month, arguing that the deal would reduce costs by $1.44 billion.

The one-time expenses from Office Depot’s job cuts will include about $95 million of severance pay and other employee-termination benefits, as well as about $25 million in costs such as lease obligations. The company also has to consult with individual countries’ work councils before implementing the restructuring plan, as required by local law.

 Office Depot to Eliminate About 1,100 Jobs in European Division
By Nick Turner

Office Depot Inc. (ODP) will eliminate about 1,100 European jobs as part of an effort to focus on business channels rather than geographic markets, aiming to save $90 million a year by the end of 2016.

The job cuts will result in restructuring charges of about $120 million, with $112 million taking the form of cash expenses in 2014 and 2015, Office Depot said today in a regulatory filing. The total excludes an additional 300 jobs that the company had already eliminated.

“The restructuring plan includes the creation of centralized and standardized processes that operate across Europe,” the Boca Raton, Florida-based company said.

Office Depot is streamlining its operations as it copes with sluggish retail demand and a shift to e-commerce. The chain merged with OfficeMax Inc. last year, and some analysts have pushed for more consolidation in the industry. Staples Inc. (SPLS) should consider buying Office Depot, Credit Suisse Group AG analyst Gary Balter said last month, arguing that the deal would reduce costs by $1.44 billion.

The one-time expenses from Office Depot’s job cuts will include about $95 million of severance pay and other employee-termination benefits, as well as about $25 million in costs such as lease obligations. The company also has to consult with individual countries’ work councils before implementing the restructuring plan, as required by local law.

[Author]

October 21, 2014 at 11:09 AM