Signet Jewelers is making buyout offers to 2,600 employees in Fairlawn, OH, and 800 in Dallas as part of a cost-cutting effort, Crain’s Cleveland Business reports.
Employees of the company’s stores, which operate under the Kay, Zales, Jared and Piercing Pagoda brands, are not eligible for the program.
The headcount reductions are designed “to fund the critical investments we need in our transformation plan,” David Bouffard, vice president of corporate affairs, was quoted saying.
If not enough employees sign up for the “voluntary transition program,” layoffs may be necessary, company officials said.
The company is also deferring merit pay increases for Store Support Center employees in Fairlawn and Dallas, Crain’s reports.
Signet CEO Virginia Drosos said in a memo, “We have critical efforts going on in real estate to reduce rents, merchandise to reduce cost of goods, indirect spending savings, and many more.
“But we also need to make some hard decisions to get Signet where we need to be.”
The Akron Beacon Journal reports that the buyouts “come as Signet, which had an under-performing 2018 holiday sales season, is working to transform its business.”
Read more at Crain’s Cleveland Business