Company cites 'softening demand' for decision to reduce headcount
About 200 workers are about to be left without jobs as Canadian Tire decides to cut its workforce headcount following its performance in the third quarter of this year.
The company expects a decrease of 3% in full-time equivalent employees as a result of targeted headcount reductions in Q4.
While the company has about 34,000 total employees, its corporate head count amounts to just shy of 7,000 people, so the job cuts represent the loss of about 200 people, reported CBC.
The company will also eliminate a majority of current vacancies, which will result in a further FTE reduction of 3%.
“Against softening consumer demand, our Q3 results show the continued resilience, relevance, and underlying strength of our business as we leveraged loyalty and prioritized essential categories within our multi-category assortment," said Greg Hicks, president and CEO, Canadian Tire, in its quarterly report. "We remain focused on driving value for our customers as we head into the important fourth quarter."
With the moves, the employer expects an annualized run-rate savings of approximately $50.0 million. The company expects to take a charge of between $20.0 million and $25.0 million in Q4 2023 in relation to these actions.
However, these will lead to long-term savings of $50 million, according to the CBC report.