Sally Beauty says job cuts announced Wednesday at their Denton headquarters is part of "a cost reduction plan designed to help fund important long-term growth initiatives."
"As a first step, the company is implementing headcount reductions, primarily at its corporate headquarters in Denton," the company said in a news release Wednesday.
Sally told NBC 5 Wednesday afternoon they were not disclosing the number of job cuts and would only say that it was a general reduction in force.
According to online records, a notice was not filed with the Texas Workforce Commission under the WARN Act notifying the state of upcoming layoffs. WARN notices are required 60 days ahead of any "mass layoff" that is not the result of a plant closing and that results in the loss of employment at a single site during a 30-day period that impacts between 50 and 499 employees (if they represent at least 33 percent of the workforce) or 500 or more employees.
In addition to the job cuts, Sally said the cost-reduction plan includes "initiatives focused on organizational efficiencies, sourcing of product and brands for resale, indirect procurement, store operating expenses, and inventory management."
Sally said Wednesday they expect to save as much as $15 million per year, some of which will be reinvested into employee wages at current stores, technology improvements to improve customer experience and e-commerce growth.
Additionally, the company plans to increase focus on "its core hair color and hair care categories."
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“We have dedicated a substantial amount of work over the last several months into the development of initiatives that we expect will generate meaningful financial benefits, within both product margin and G&A expenses,” stated Chris Brickman, President and Chief Executive Officer. “We plan to utilize these benefits to maintain our profitability and fund the key investments required to transform the business and intensify our focus on our most differentiated categories - hair color and hair care.
The reductions, Sally added, are an expansion of the restructuring plan announced in November 2017.
