NEW YORK CITY-In an initiative geared at improving profits, fashion company Jones Group Inc. will shutter 170 retail store locations and trim its workforce by 8% by the middle of next year.
The company announced the store closures and workforce reductions on Wednesday. Shares of the company rose 2.7% to $13.97 on the New York Stock Exchange after it announced the cuts, which it said would cost between $40 million to $60 million to implement over the next 15 months, according to a Reuters report.
The Jones Group says it will cut U.S. retail staff by approximately 18% and corporate, support and supply chain staff by about 2%. The company's estimated first-quarter adjusted earnings of about 15 cents per share is lower than Wall Street expectations for a profit of 25 cents a share. See story at Reuters.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
