MONTREAL – Reitmans Canada Ltd. (TSX:RET.A) says it will eliminate 77 positions – about 10 per cent of it head office employees – to reduce costs.
The fashion retailer says the cuts are aimed at strengthening the company as it faces an increasingly competitive and challenging environment.
The company says the moves are also needed to offset pressures brought on by the impact of a weaker Canadian dollar, which is currently trading at near 13-year lows of less than 70 cents U.S.
Reitmans, which has already closed dozens of stores across its various brands, says severance costs associated with the latest staff reductions will total some $2 million but are expected to generate annualized savings of some $6 million.
Founded in Montreal in 1926, the company employs 10,000 people at more than 700 locations across Canada under banners including Reitmans, Penningtons, Addition Elle, and Smart Set.