Chico's Cuts 240 Jobs, Plans 120 Store Closures

Chico's FAS will accelerate its rate of store closures in fiscal 2015, shuttering 35 shops this year, and 120 locations total through 2017, which is expected to save $55.2 million.

For fiscal 2015, the retailer plans to open approximately 40 new stores, significantly fewer than the openings of 125 stores in 2012, 135 stores in 2013, and 109 stores in 2014.

Chico's is also undertaking an organizational realignment to ensure that resources are better aligned with long-term growth initiatives, including omnichannel.  The changes resulted in the elimination of approximately 240 existing positions, which is expected to result in approximately $38 million of annualized savings. The corporate organizational realignment slashed the headquarters and field management employee base headcount by 12 percent.
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