The 'Lowe-Down' on Lowe's Layoffs, Store Closings
Oct. 17, 2011
Staff-HispanicBusiness.com
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Lowe's Companies, Inc. (NYSE: LOW) announced today that it is closing 20 underperforming Lowe's stores, affecting almost 2,000 employees. Ten Lowe's locations shuttered at the end of business yesterday; the other 10 are due to close after an inventory sell-through, which the company says will take approximately one month.
The 1,950 Lowe's employees subject to layoffs due to the store closings will receive pay and benefits for 60-90 days, according to the company. Further, Lowe's "will be working with local government agencies to help employees with outplacement assistance," according to a statement.
Robert A. Niblock, chairman, president and CEO of Lowe's, said: "Closing stores is never easy, given the impact on hardworking employees and local communities. However, we have an obligation to make tough decisions when necessary to improve profitability and strengthen our financial position."
He further cited generating shareholder value, enhancing the customer shopping experience, and creating sustained customer loyalty over the long term as the company's ultimate priorities.
Source: HispanicBusiness.com (c) 2011. All rights reserved.
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