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Radio Shack Plans Workforce Cuts

8/10/2006 03:59:00 PM Eastern

Fort Worth, Texas — RadioShack has announced plans to reduce its workforce by approximately 400 to 450 positions across various support functions in order to reduce overhead expenses and improve its competitive position in the marketplace.

The company said the cuts will include employees at all levels at its headquarters operation. RadioShack said it does not know exactly how many employees will be affected, but that all will be notified by early September.

The move is part of a turnaround plan, first announced in February, with the goal of increasing the average unit volume, lowering overhead costs and growing profitable square footage. Since the plan’s announcement, the company has made several streamlining moves including closing 480 underperforming stores, consolidating distribution centers, starting a cost restructuring program and liquidating end of merchandise to make room for new products.