Bed Bath & Beyond is Cutting Hundreds of Jobs

American chain of domestic merchandise retail stores Bed Bath & Beyond revealed on Thursday that the company will be slashing 500 jobs, or 10% of its corporate workforce.

The retailer said it expects to reduce expenses by roughly $85 million annually, as a result of its restructuring plan. “This will reset our cost structure, allowing us to re-invest where it matters,” CEO Mark Tritton commented.

The company said it is making a “significant reduction” in management positions across its business. It will remove duplicate jobs and cut certain middle layers of store management.

“We are announcing extensive changes today to right-size our organization as part of our efforts to reconstruct a modern, durable business model,” said Tritton. “We do not take this action lightly but, while difficult, these measured and purposeful steps are necessary. This will reset our cost structure, allowing us to re-invest where it matters most to our customers, to re-establish our authority in the Home space.”

The company employees roughly 55,000 to 60,000 people overall, depending on the season and has about 3,000 people working at its corporate headquarters in New Jersey.

Cutting the jobs wont come without a price however, as the company said it expects to incur net pretax charges of about $26 million, which mainly accounts for paying out severance and related costs. This will be expensed in the company’s fiscal fourth quarter.

Not too long ago the company also said that it plans to spend up to $400 million on store remodels and supply chain upgrades, along with about $600 million this fiscal year on share repurchases and debt reduction.

The company is also selling its PersonalizationMall.com business, known for selling gifts for special occasions and holidays, to 1-800-Flowers.Com for $252 million.

Shares of the stock have dropped over 35% in the last twelve months.

Disclaimer: We have no position in Bed Bath & Beyond Inc. (NASDAQ: BBBY) and have not been compensated for this article.