Costco Freezes Hiring, But No Layoffs Seem Imminent

Costco Wholesale Corp. (Issaquah, Wash.) has instituted a hiring freeze at its corporate headquarters and regional offices but says it will avert the layoffs affecting many other retailers.

“We're trying to make do with a little bit right now; it seems to be working,” Costco cfo Richard Galanti told the Seattle Post-Intelligencer. “We're not laying anyone off. So far, so good.”

Galanti said the freeze, which applies to the Issaquah headquarters and central and regional administrative offices around the U.S., is a general rule, not an absolute. “If there's a need, you can go to our president and he can approve it,” he said.

The warehouse retailer warned, however, that it would “substantially” miss Wall Street estimates due to poor sales and margins. Its January same-store sales declined 2 percent, based on flat U.S. sales and a 9 percent decline overseas (on less-favorable exchange rates). Total sales for the month dipped slightly.