Wet Seal reports cost-cutting initiatives

FOOTHILL RANCH, Calif. Wet Seal announced today that has implemented staff reductions affecting 41 employees as part of a cost-cutting initiative.In addition, the company decided it will not fill ten currently vacant positions. Forty-nine positions were eliminated in the company’s corporate offices and two were eliminated in the field.

The company said it expects to incur an annualized pre-tax savings of approximately $4.3 million beginning in fiscal 2008. The company expects to incur a one-time charge of approximately $0.4 million in its fiscal 2007 fourth quarter related to the elimination of these positions. Affected employees were provided with severance packages.

Wet Seal reported that it will also cut costs by eliminating national print campaigns deemed inaffective by management, reducing its marketing expenses by approximately $1.8 million in fiscal 2008.

Ed Thomas, ceo, commented, “As we have previously stated, the company is undergoing a review of various business functions, with the goal of increasing profitability. We are in the early stages of implementation. Unfortunately, the review has identified the need to reduce our corporate workforce. We very much appreciate the contributions of the affected associates to the company’s past success and regret the need to take these actions.