Limited Brands said Friday that, in an effort to slash costs and increase shareholder value, it is cutting 10 percent of its workforce within its corporate offices and headquarters for its brands, speeding up share buybacks and boosting the company's share repurchase program.
The company expects the job cuts and cost-reduction initiatives to save about $100 million beginning in fiscal 2008.
A majority of the savings will come through the elimination of about 530 jobs, which includes the removal of open positions, the reduction of current staff and transfers to the new Express business in conjunction with the upcoming sale.
The owner of Victoria's Secret and Bath & Body Works previously announced that it would sell 67 percent of its interest in Express to Golden State Capital for $548 million. The deal is expected to close on July 6.
In order to improve overall profitability, Leslie Wexner, chairman and chief executive officer, said the retailer launched a broad effort to streamline the company, enhance productivity and efficiency and focus resources on the most promising growth opportunities.
"We are on the right track with our value-enhancing strategic initiatives and are now ready to embark on fine-tuning the organization to better match the size and complexity of the 'new Limited Brands,' where we'll focus primarily on intimate apparel and personal care," Wexner said in a statement.
Limited intends to raise $1.25 billion in debt to fund the $1 billion share repurchase program. The company said it is continuing to explore strategic alternatives for its Limited Stores business.
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