The next shoe has fallen in the retail job market. Home Depot has announced that it will cut 7,000 jobs:
NEW YORK (CNNMoney.com) — Home Depot, the No. 1 home improvement retailer, announced Monday that it is shutting down its high-end EXPO business and shrinking its support staff, with both moves resulting in a reduction of 7,000 jobs.
Home Depot (HD, Fortune 500) said the staff cuts impact 2% of its total workforce. The company said the the latest job cuts will not impact any customer service positions in its Home Depot stores.
“Exiting our EXPO business is a difficult decision, particularly given the hard work and dedication of our associates in that business and the support of our loyal customers,” Home Depot CEO Frank Blake said in a statement. “At the same time, it is a necessary decision that will strengthen our core Home Depot business.”
The company said in a statement that its EXPO business has not performed well financially and is not expected to anytime soon.
“Even during the recent housing boom, it was not a strong business. It has weakened significantly as the demand for big ticket design and decor projects has declined in the current economic environment. Continuing this business would divert focus and resources from the company’s core [Home Depot] stores,” the statement said.
The retailer is taking other steps as well:
Home Depot also announced a salary freeze for all of its officers, although the retailer would continue to offer merit increases to non-officer level staff, earned bonuses and the company’s existing 401 (k) matching contribution for all employees, including officers.
