North American discount variety stores operator Dollar Tree is planning to cut 370 positions at its Family Dollar store support centre in Matthews, North Carolina, the US.
Including 100 vacant posts, the job cut is the result of the company’s ongoing efforts to incorporate its support functions through a shared services model.
In relation to the restructure, Dollar Tree will incur approximately $6m in pre-tax expenses during the current fiscal year.
Dollar Tree chief executive officer Bob Sasser said: "This announcement represents another step in the process of integrating our two large organisations.
"Since completing our acquisition a year ago, we have communicated our plans to utilise a shared services model, leveraging our back office functions to support both the Dollar Tree and Family Dollar business segments.
“These difficult but necessary actions will enhance our ability to efficiently support our businesses, while achieving our stated synergy targets. Our focus continues to be on maximising our operational efficiencies to drive tremendous value for our customers, while creating long-term value for our shareholders."
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
With the restructuring, the company also aims to achieve its goal of $300m in combined run rate annual synergies by the end of its third year after its acquisition last July.
These synergies will be realised through a mixture of savings from sourcing and procurement of products and services; banner optimisation; and optimisation of the company’s distribution and logistics networks.
Sasser also said: "We will operate and grow both banners.
"To ensure that we deliver value and the brand standard, we plan to keep our customer-facing organisations separate and focused on the individual banners.
“Specifically, store operations and merchandising functions will remain largely unchanged. There are no plans to include these functions in the shared services model."
The company currently has more than 14,000 stores across 48 states in the US and five Canadian provinces.