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Closures & Layoffs: Staples To Cut Retail Square Footage 15%

Also: FirstEnergy To Cut at Least 200 and More Next Year; and More Downsizings Across the Country
September 26, 2012
Staples Inc., the dominant office supplies retailer, is embarking on a strategic plan to integrate its retail and online offering, increase investment in its online businesses, reorganize its operations, implement leadership changes, initiate a multi-year cost savings plan, and restructure its international operations.

Staples will be increasing investment in online and mobile capabilities to provide business customers with a differentiated multi-channel shopping experience. Building on its success in categories like facilities and breakroom supplies, copy and print, and technology products, Staples is significantly expanding its assortment beyond office supplies.


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To help fund these investments in growth, Staples is initiating a multi-year cost savings plan which is expected to generate annualized pre-tax cost savings of approximately $250 million by the end of fiscal year 2015.

Staples plans to reduce retail square footage in North America by 15% by the end of fiscal year 2015. As part of this plan, Staples is accelerating the closure of approximately 15 U.S. stores which will result in a pre-tax cash charge of $35 million during the fourth quarter of 2012. Staples now expects a total of 30 net store closures and 30 store downsizings and relocations in North America during fiscal year 2012.

At year-end 2011, Staples operated 1,583 stores in the United States and 334 stores in Canada. The majority of those stores were its "Dover" superstore format. Staples had already began shrinking from sizes having 24,000 square feet to 15,000 square feet.

"Our vision is to establish Staples as the single-source product authority for millions of businesses," said Ron Sargent, Staples' chairman and CEO. "We are building on the strengths that are the foundation of our success by focusing on five key priorities: accelerate growth in our online businesses; fully integrate retail and online; improve retail store productivity; restructure our International Operations; and return cash to stakeholders."

This strategy builds on Staples' unique strengths, including its world-class supply chain capabilities, extensive retail store network, strong relationships with business customers of all sizes, and industry-leading online presence.

In Europe, Staples plans to close 45 stores and several sub-scale delivery businesses by the end of fiscal year 2012.

"We are focusing on our biggest opportunities, aligning our organization to address the needs of our customers, and reducing exposure to our weakest businesses," Sargent said. "This puts us in a much stronger position to drive long-term sales and earnings growth."

FirstEnergy To Cut at Least 200 and More Next Year


FirstEnergy Corp. is conducting an organizational study to determine how its workforce should be aligned to best meet the challenges of the continued weak economy. The initiative will include a review of corporate support departments and FirstEnergy Solutions, primarily in Akron, OH.

The results of the organizational study will be announced in early November. Staffing reductions of approximately 200 employees are expected.

"This effort is in response to a combination of economic factors, including continued slow customer load growth and an abundance of electric generation supply resulting in low power prices," said Anthony J. Alexander, FirstEnergy president and CEO. "While this is a difficult step to take, it is part of our ongoing efforts to meet these economic challenges head-on and ensure the company is positioned for long-term growth and success."

In addition to the organizational study, the company also expects further workforce reductions throughout 2013 as it will limit replacement of employees who leave the company through normal attrition.

Closures & Layoffs




Sheet1

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CompanyAddressCityStateClosure or LayoffNo. of Workers ImpactedImpact Date

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Yardney Technical Products82 Mechanic St.PawcatuckCTClosure14411/16/2012

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Alorica, Inc.19500 South Dixie HighwayCutler BayFLUnknown12711/11/2012

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Bank of America6360 N.W. 5th WayFort LauderdaleFLUnknown3610/12/2012

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BankAtlantic / BB&T Corp.2100 Cypress Creek RoadFort LauderdaleFLUnknown36510/1/2012

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Ball Metal Beverage Packaging5909 N.W. 18th DriveGainesvilleFLUnknown12712/31/2012

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Kmart Store #42835751 Beach Blvd.JacksonvilleFLUnknown7112/9/2012

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Bank of America9000 Southside Blvd.JacksonvilleFLUnknown63Immediately

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American Eagle5727 NW 7th St.MiamiFLUnknown14611/15/2012

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Bertram Yacht3663 NW 21st St.MiamiFLUnknown8610/20/2012

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Caremark, L.L.C.2528 NW 19th St.Pompano BeachFLUnknown14511/1/2012

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Digital Domain Media Group10250 and10521 SW Village ParkwayPort St. LucieFLUnknown350Immediately

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First Advantage100 Carillon ParkwaySt. PetersburgFLUnknown10011/17/2012

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Comcast Cable1401 Northpoint ParkwayWest Palm BeachFLUnknown8910/26/2012

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Eagle Iron Works129 E. Holcomb Ave.Des MoinesIAClosure10010/15/2012

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Manitowoc Foodservice1111 N. Hadley RoadFort WayneINClosure2354/30/2013

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Ashland Hardware Systems790 W. Commercial Ave.LowellINClosure663/31/2013

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Jewel-Osco Store3535 S. Franklin St.Michigan CityINClosure12110/8/2012

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Harborside Nursing & Rehabilitation Center501 W. Franklin St.BaltimoreMDLayoff718/25/2012

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Human Genome Sciences14200 Shady Grove RoadRockvilleMDLayoff11410/30/2012

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White Marsh Distribution LLC10000 Franklin Square DriveWhite MarshMDClosure12011/30/2012

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American Showa960 Cherry St.BlanchesterOHLayoff1898/24/2012

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Cincinnati Enquirer (Enquirer Media)1531 Western AveCincinnatiOHClosure21710/8/2012

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Ball Corp.350 McCormick Blvd.ColumbusOHClosure11012/31/2012

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Global Contact Services (GCS)555-B Mill Park DriveLancasterOHClosure10010/25/2012

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Asahi Kasei Spandex1566 Bushy Park RoadGoose CreekSCClosure11012/31/2013

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Alpha Natural Resourcess406 W. Main St.AppalachiaVALayoff11011/17/2012

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Regional Elite5202 Aviation Drive NorthwestRoanokeVAClosure3810/30/2012

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URS5606 Virginia Beach Blvd.Virginia BeachVALayoff20410/31/2012

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Federal Mogul2410 Papermill RoadWinchesterVAClosure12910/12/2012

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General Dynamics Land Systems14041 Worth Ave.WoodbridgeVALayoff4410/1/2012

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JRN Inc. (dba McDonald's Express of Algoma)1025 Lake St.AlgomaWIClosure3311/16/2012

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BMO Harris Bank Mortgage Investment MgtW57 N154280 Doerr WayCedarburgWILayoff3711/12/2012

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Community Health PartnershipvariousEau Claire, River Falls, Chippewa Falls, MenomonieWIClosure35312/31/2012

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Transit Express Inc424 W. Cherry St.MilwaukeeWILayoff10010/31/2012

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BMO Harris Bank Sun Prairie Data Center150 Communication DriveSun PrairieWILayoff3711/12/2012



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