While reporting a disappointing second quarter on Tuesday, Dick’s Sporting Goods also shared that it conducted a business optimization of the organization to better align its talent, design and spending to support the company’s most critical strategies while streamlining overall cost structure.
What does all that mean? Layoffs.
“As part of our review, we eliminated certain positions primarily at our customer support center on August 21, 2023, for which we expect to incur approximately $20 million of severance expense in the third quarter of 2023,” the company said in a release. “Related cost savings are expected to be largely offset by strategic talent investments over the next twelve months.”
Dick’s Sporting Goods continued that while it had not committed to specific additional actions, it expected to complete its business optimization during fiscal 2023, which could result in additional one-time charges of $25 million to $50 million.
A source told Bloomberg News that Dick’s had laid off 250 corporate employees as part of the plan. Retail staff were reportedly not impacted.
