In a recent SEC filing, Office Depot announced a big restructuring plan that will see 13,100 job losses by 2023 and store and distribution facility closures.
On 13 May 2020, Office Depot, Inc. announced a restructuring plan to realign its operational focus to support its “business-to-business” solutions and IT services business units and improve costs. Implementation of the restructuring plan is expected to be substantially completed by the end of 2023.
The restructuring plan includes the reduction of approximately 13,100 employee positions and closing and/or consolidating distribution facilities and retail stores by the end of 2023.
Office Depot said it is still evaluating the number of potential retail store and distribution facility closures, as well as the timing of any such closures.
The Company currently estimates it will incur incremental restructuring charges of up to approximately $543 million (€502 million), $194 million (€179 million) of which will result in cash expenditures by the end of 2023.
According to the report, such cash expenditures include $30 million (€28 million) for supply chain capital investments and $21 million (€19 million) for IT capital investments. The remaining $492 million (€455 million) of estimated charges expected in the restructuring plan is comprised of one-time costs associated with potential retail store and distribution facility closures and related headcount reductions.
The Company expects the restructuring to result in up to approximately $860 million (€795 million) in net savings by the end of 2023.
