Signet Jewelers on Tuesday said it will lay off some employees in Akron after not enough people signed up for voluntary buyouts.
The Akron-based national jewelry retailer declined to say how many employees will be laid off or how many are taking part in what the company calls its Voluntary Transition Program, or VTP, that was announced earlier this year.
“We were hopeful that we could achieve our cost savings targets through the VTP, but we have let some employees know today that based on VTP participation, we are taking additional actions, including an involuntary reduction-in-force with transition and outplacement assistance," spokesman David Bouffard said.
Signet has about 2,600 employees at its Akron campus. The voluntary buyouts also included employees in Texas offices but did not include retail store employees.
"As part of Signet's Path to Brilliance transformation plan, in February we announced a Voluntary Transition Program that will provide eligible team members with the opportunity to transition out of the company with certain separation benefits,” Bouffard said. “Though this was a difficult decision, it was necessary as we focus on identifying cost savings to invest in the business initiatives that will help us deliver inspiring products and ideal online and in-store shopping experiences to our customers.”
Employees had until late March to decide whether to apply for a buyout, with Signet managers evaluating results by this week. The company previously said employees accepted into the voluntary program are supposed to begin leaving at the end of this month.
While Signet has not revealed how many people will go, the company said in its latest quarterly financial release that the workforce reductions are included in estimated cost-cutting savings of $60 million to $70 million planned for the current fiscal year.
Signet lost $83.5 million, or $2.25 a share, on revenue of $2.15 billion for the quarter ending Feb. 2. It also lost money for fiscal 2019.
Signet shares on Tuesday were up 60 cents, or 2.7 percent, to $23 at market's close.
Jim Mackinnon covers business. He can be reached at 330-996-3544 or firstname.lastname@example.org. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ.