RadioShack Corp. (Fort Worth, Texas) plans to reduce its workforce by approximately 400 to 450 positions across its various support functions, a move intended to reduce its overhead expenses and improve its long-term competitive position in the marketplace.
Most of the reductions will be at the company’s headquarters, however exact numbers have not yet been determined. The company said the reduction will include employees at all levels.
In February, RadioShack announced a turnaround plan designed to increase average unit volume, lower overhead costs and grow profitable square footage. Since that announcement, the company has closed 480 underperforming stores, consolidated its distribution centers, embarked on a cost restructuring program and liquidated end-of-life merchandise to make room for a new product assortment in its more than 6,000 stores nationwide.
The consumer electronics specialty retailer operates more than 6000 company and dealer stores; more than 100 RadioShack locations in Mexico and Canada; and nearly 800 wireless kiosks.