It looks like job cuts are coming to Dollar Tree, and 370 positions are going by the wayside as the firm restructures after its acquisition of Family Dollar. Those cuts will sweep up 100 vacant Family Dollar positions – so no layoffs there – and come as the chain is hoping to make its shared services model worth through integration of the two firms.
“This announcement represents another step in the process of integrating our two large organizations,” said Bob Sasser, CEO Dollar Tree. “Since completing our acquisition a year ago, we have communicated our plans to utilize a shared services model, leveraging our back office functions to support both the Dollar Tree and Family Dollar business segments. Our focus continues to be on maximizing our operational efficiencies to drive tremendous value for our customers, while creating long-term value for our shareholders.”
Sasser further noted the goal is to bring growth to both firms.
“At Dollar Tree, everything is $1 while Family Dollar serves as your neighborhood discount store,” he said. “To insure that we deliver value and the brand standard, we plan to keep our customer-facing organizations separate and focused on the individual banners. Specifically, store operations and merchandising functions will remain largely unchanged. There are no plans to include these functions in the shared services model.”
The company expects to incur pre-tax expense of approximately $6 million during fiscal 2016 related to the restructuring.