Dollar Tree cutting jobs as part of corporate restructuring

Dollar Tree will eliminate some 370 positions as part of a corporate restructuring related to its acquisition of Family Dollar last year.



The cuts, which include 100 vacant positions at its Family Dollar store support center in Matthews, North Carolina, are part of the chain’s ongoing efforts to integrate its support functions through a shared services model.



“This announcement represents another step in the process of integrating our two large organizations,” said Bob Sasser, CEO Dollar Tree. “Since completing our acquisition a year ago, we have communicated our plans to utilize a shared services model, leveraging our back office functions to support both the Dollar Tree and Family Dollar business segments. Our focus continues to be on maximizing our operational efficiencies to drive tremendous value for our customers, while creating long-term value for our shareholders.”



Sasser emphasized that the company will continue to operate and grow both the Dollar Tree and Family Dollar banners.



“At Dollar Tree, everything is $1 while Family Dollar serves as your neighborhood discount store,” he said. “To insure that we deliver value and the brand standard, we plan to keep our customer-facing organizations separate and focused on the individual banners. Specifically, store operations and merchandising functions will remain largely unchanged. There are no plans to include these functions in the shared services model.”



The company expects to incur pre-tax expense of approximately $6 million during fiscal 2016 related to the restructuring announced today for one-time severance-related benefits.