PLCE - The Children's Place to reduce workforce by 181 positions
2023-06-28 17:07:32 ET
- The Children's Place ( NASDAQ: PLCE ) on Wednesday said it would cut its workforce by 17% as part of an ongoing shift from a legacy store operating model to a digital-first retailer.
- PLCE's headcount reduction represents 181 positions, with the majority of them located at the company's corporate offices in New Jersey.
- The company had also previously said it had brought forward the termination of its corporate office building lease.
- "That lease will now expire in May 2024, which, combined with the workforce reduction initiative, will enable the Company to reduce its current space configuration and capitalize on lower prevailing market rates than would have been applicable under the Company’s existing lease, which included escalations in occupancy costs and did not expire until 2029," the maker of apparel for babies and kids said in a regulatory filing .
- PLCE added that it expects to incur a non-operating charge of $13M to $15M in its Q2 due to its strategic actions.
- The Children's Place ( PLCE ) stock was down 2% to $20.93 after hours.
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The Children's Place to reduce workforce by 181 positions