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Wet Seal Cuts 41 Jobs, Eliminates Advertising

1/28/2008

New York City, The Wet Seal Inc. said Friday it will cut 41 staffers and leave 10 other posts vacant in a cost-cutting move amid a difficult retail environment. Forty-nine positions were corporate and two were field positions.

The company expects to save $4.3 million pretax beginning in fiscal 2008. It will take a $400,000 charge in its fiscal 2007 fourth quarter related to the job cuts.

Wet Seal will also save $1.8 million during fiscal 2008 by ending its national print advertising.

The company said earlier that it would review its business functions in an effort to increase profitability. Retailers are facing lackluster sales as consumers cut discretionary spending due to a weak housing market, credit problems and high food and gas prices.

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