(Bloomberg) -- Home Depot Inc., the world's biggest home-improvement retailer, will fire workers, close 15 stores and scrap plans for 50 more because the U.S. housing slump is crippling sales.
Home Depot rose as much as 5.4 percent in New York trading after saying it would eliminate or move 1,300 jobs because of the closings. The Atlanta-based retailer said in a statement today it will reduce investments in new locations by about $1 billion over the next three years.
Since taking over in January 2007, Chief Executive Officer Frank Blake has sold the company's commercial-builder unit, and closed landscape and floor outlets to focus on retail stores, where customer service trails that of Lowe's Cos. Home Depot lost 33 percent of its market value last year.
The moves will cost Home Depot $586 million, mostly in the first quarter, the company said.
Home Depot rose 88 cents, or 3.1 percent, to $29.68 at 10:41 a.m. in New York Stock Exchange composite trading.
The job cuts are Home Depot's third this year after the retailer announced in January that it would reduce staff at its Atlanta headquarters by 500 people, or 10 percent. This month it said it may cut as many as 1,000 jobs as it reduces human- resources departments in stores by half to shift more workers to the sales floor.
The retailer employs about 331,000 people, two-thirds of them full-time.
Home Depot said in February that fourth-quarter profit fell 27 percent and forecast earnings below analysts' estimates after the deepest housing slump in a quarter century showed no sign of receding.
Sales, which dropped for the first time ever last year, will fall as much as 5 percent during a ``challenging'' 2008, Blake said in a statement at the time.
Home Depot rose as much as 5.4 percent in New York trading after saying it would eliminate or move 1,300 jobs because of the closings. The Atlanta-based retailer said in a statement today it will reduce investments in new locations by about $1 billion over the next three years.
Since taking over in January 2007, Chief Executive Officer Frank Blake has sold the company's commercial-builder unit, and closed landscape and floor outlets to focus on retail stores, where customer service trails that of Lowe's Cos. Home Depot lost 33 percent of its market value last year.
The moves will cost Home Depot $586 million, mostly in the first quarter, the company said.
Home Depot rose 88 cents, or 3.1 percent, to $29.68 at 10:41 a.m. in New York Stock Exchange composite trading.
The job cuts are Home Depot's third this year after the retailer announced in January that it would reduce staff at its Atlanta headquarters by 500 people, or 10 percent. This month it said it may cut as many as 1,000 jobs as it reduces human- resources departments in stores by half to shift more workers to the sales floor.
The retailer employs about 331,000 people, two-thirds of them full-time.
Home Depot said in February that fourth-quarter profit fell 27 percent and forecast earnings below analysts' estimates after the deepest housing slump in a quarter century showed no sign of receding.
Sales, which dropped for the first time ever last year, will fall as much as 5 percent during a ``challenging'' 2008, Blake said in a statement at the time.
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