Dollar Tree is cutting employment to accommodate its corporate restructuring plan.
The major discount retailer said it will eliminate 370 jobs, including 100 open positions, at its Matthews, North Carolina-based Family Dollar support center as part of its shared services model efforts. Integrating Dollar Tree and Family Dollar will help the company reach its synergies goal while ensuring both brands stay strong in today’s competitive market.
“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. These difficult but necessary actions will enhance our ability to efficiently support our businesses, while achieving our stated synergy targets,” said Dollar Tree CEO Bob Sasser. “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.”
Throughout the merge, Dollar Tree and Family Dollar will continue to operate as individual banners to comply with value and brand standard. Merchandising functions and store operations will remain the same, since they are not part of the shared services model.
Following its July 2015 acquisition of Family Dollar, Dollar Tree anticipates it will reach its goal of $300 million in combined annual synergies by 2018 through sourcing and product procurement savings, corporate overhead, banner optimization and distribution network optimization.