Office Depot Layoffs 2020: 13,100 Jobs Cut, Store Closures, And Shuttered Distribution Centers

As part of a cost-cutting effort, Office Depot (ODP) said it will be laying off about 13,100 employees, in addition to closing stores and distribution centers.

The office supply and business solutions retailer announced the job cuts on Thursday in a Securities and Exchange Commission filing, saying it was looking to “realign its operational focus.” The company said the restructuring plan is expected to be completed by the end of 2023 and is being implemented to shift its focus to its business-to-business solutions and IT services business units.

Office Depot said it will close or consolidate its distribution facilities and retail stores by the end of 2023, with layoffs coming around the same time. The company is still in the process of evaluating which facilities and retail stores will close and how many locations will be shuttered. Timing of the closures was also being decided by Office Depot, according to the SEC filing.

Employees will be provided severance pay, which Office Depot expects to cost about $55 million with $88 million dedicated to restructuring costs, which the company said is anticipated to result in about $860 million in net savings by the end of 2023.

The cost to restructuring is estimated to be about $543 million, with $194 million dedicated to cash expenditures and about $492 million in expenses related retail store and distribution centers closures as well as job cuts, which will be incurred by the end of 2023.

Office Depot closed about 50 namesake and OfficeMax stores in 2019.

Shares of Office Depot stock were up 7.66% as of 9:51 a.m. EDT on Friday.