Williams-Sonoma to Cut Staff, Close 2 Support Centers

San Francisco Williams-Sonoma Inc. said Wednesday that it is cutting 1,400 positions and closing two support centers to cope with slowing sales in the tough economy.

Williams-Sonoma plans to cut 18% of its full-time staff and close a call center in Camp Hill, Pa., and a distribution facility in Memphis, Tenn. It said it will make the cuts by the end of the month, saving it an estimated $75 million.

The company also plans to cut catalog production, store growth and capital spending in 2009.

"All of these initiatives will allow us to maintain our financial flexibility, while at the same time focus on those strategic objectives that will enhance our competitive positioning when these macro-headwinds subside," Williams-Sonoma chairman and CEO Howard Lester said in a statement.

Williams-Sonoma reported earlier this month that its same-store sales dropped 24.2% over the holidays and warned its fourth-quarter profit will likely come in at the low end of its previously announced guidance.