Talbots to Eliminate COO Post, Cut 9% of Corporate Staff
Hingham, Mass. Talbots Inc. plans to eliminate the post of COO and cut its corporate staff by 9% in a move to save $14 million a year.
Talbots said COO Philip Kowalczyk will leave his post in early July. His duties will be taken over by other executives, the company said in a regulatory filing.
The company said the job cuts will cost about $5.9 million. It already booked $2.1 million of that in restructuring charges in the first quarter, when it reported a 69% drop in profit.
Talbots plans to take the remaining $3.8 million charges in its second-quarter results. The company said it expects to incur additional costs in 2008 related to a broader restructuring aimed at reducing operating costs.