The Talbots Inc. will lay off about 9% of its work force in an effort to save $14 million, part of its stated goal to reduce its cost structure by a minimum of $100 million by the end of fiscal 2009.
According to news reports, the direct marketer and retailer looked at 1,455 positions. A total of 104 people lost their jobs, and 25 open positions will not be filled
In addition, operating chief Philip Kowalczyk will leave his post in early July. His duties will be taken over by other executives.
The company said this layoff will cost about $5.9 million in severance and severance benefits as well as related professional consulting fees.
Of this amount, approximately $2.1 million of net pre-tax expense was recorded in the first quarter of fiscal 2008, which was included in the firm’s restructuring charge as detailed in its first quarter results May 21.
The company expects to record the additional net pre-tax expense of approximately $3.8 million in connection with this action in the second quarter of fiscal 2008.
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