Ann Taylor plans more job cuts as part of expanded restructuring program

New York City Ann Taylor Stores Corp. said Thursday that it is expanding its previously announced restructuring initiatives and updating its second-quarter forecast. The retailer said its latest actions include more job cuts at its corporate and divisional organization and changes to field staffing.

The chain said it expects to generate ongoing annualized savings of about $125 million over the three-year period ending in fiscal 2010, compared with the previously expected $85 million to $95 million. Ann Taylor also forecasted second-quarter sales of about $470 million and adjusted earnings per share to be slightly better than breakeven.

Kay Krill, Ann Taylor president and CEO stated, "Since we began our strategic restructuring program in January 2008, our goal has been to build a more effective and efficient operational foundation that supports future growth and improved profitability over the long term. In light of the current environment, and encouraged by the process improvements and efficiencies we have achieved to-date, we have now identified additional opportunities to further reduce our SG&A cost structure, while improving our efficiency and profitability. These additional steps are expected to generate approximately $30 million in incremental annualized savings over our previous range.”