Home Depot announces third round of redundancies

Home Depot has announced it is to close 15 US superstores, resulting in around 1,300 job losses. It also announced it had abandoned plans to open 50 other stores.

The group confirmed that the 1,300 staff affected will be offered jobs at its remaining 2,200 stores.

The closures will prompt the third round of redundancies at Home Depot this year. In January, it announced that 500 job losses were to go at its Atlanta headquarters while a further 1,000 were lost last month in its human resources division.

The world’s largest DIY retailer said it hopes the revised expansion plan and store closures will improve cash flow, provide stronger returns and allow it to invest in existing stores.

The group is preparing for a continuation of the housing crisis, which has reduced demand for home improvement products.

Frank Blake, chairman and chief executive, said by building fewer stores, in the best locations, and making sure our existing stores are profitable, our company will be in a much stronger competitive position.

We will invest in our core retail business, in this case our existing stores, which drive our most profitable sales, concluded Mr Blake.

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