Aeropostale is trimming costs. The mall-based denim retailer announced plans to institute a new cost reduction program that targets both direct and indirect spending across the company, which entails the elimination of 100 positions by the end of fiscal 2015.
Aeropostale estimates that pre-tax cash expenses for fiscal 2015 will total approximately $1.5 million. Under the new plan, the company said it expects to generate approximately $35 million to $40 million in annualized pre-tax savings in fiscal 2016.
In a press release, Aeropostale CEO Julian Geiger said, “The decisions that led to today’s actions are a result of our focus on Aéropostale’s future, and our goal of returning to profitability.” He added, “ We are building upon areas of progress and continue to work to improve our business.”
Aeropostale also announced that Geiger has voluntarily relinquished 1,000,000 stock options, previously granted to him by the company. The shares will be used by the company to motivate and retail key members of its organization.