Reitmans to shed head of­fice staff

The Guardian (Charlottetown) - - BUSINESS -

MON­TREAL— Reitmans Canada Ltd. (TSX: RET. A) says it will elim­i­nate 77 po­si­tions — about 10 per cent of it head of­fice em­ploy­ees — to re­duce costs. The fash­ion re­tailer says the cuts are aimed at strength­en­ing the com­pany as it faces an in­creas­ingly com­pet­i­tive and chal­leng­ing en­vi­ron­ment. The com­pany says the moves are also needed to off­set pres­sures brought on by the im­pact of a weaker Cana­dian dol­lar, which is cur­rently trad­ing at near 13-year lows of less than 70 cents U.S. Reitmans, which has al­ready closed dozens of stores across its var­i­ous brands, says sev­er­ance costs as­so­ci­ated with the lat­est staff re­duc­tions will to­tal some $2 mil­lion but are ex­pected to gen­er­ate an­nu­al­ized sav­ings of some $6 mil­lion. Founded in Mon­treal in 1926, the com­pany em­ploys 10,000 peo­ple at more than 700 lo­ca­tions across Canada un­der ban­ners in­clud­ing Reitmans, Pen­ning­tons, Ad­di­tion Elle, and Smart Set.

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