RALEIGH – Advance Auto Parts disclosed to investors in a conference call on Wednesday that it would be laying off some 400 people as part of $150 million in cost cuts that were announced earlier in the day.
The North Raleigh-based company said some of the layoffs would be made at its headquarters.
No mention of layoffs were made in the initial public announcement about the reductions in which Advance (NYSE: AAP) reported a big drop in revenue year-over-year. Shares closed at $55.67 on Wednesday, down $2.73 or nearly 5%.
“As part of our ongoing strategic and operational review of the business, we have identified opportunities to streamline efforts, improve efficiency and significantly reduce costs within our organization. As a result, we have made the difficult decision to eliminate approximately 400 positions across our organization, including positions based at our Raleigh headquarters, corporate roles based outside of North Carolina, field based positions located outside of Raleigh and positions at our office in Hyderabad, India,” said Darryl Carr in a statement emailed to WRAL News.
Advance Auto Parts to cut costs by $150M, sell 2 business units, lay off 400
“The decision to eliminate even a single role is extremely difficult and we are committed to treating affected individuals with compassion and care by offering transition assistance to those impacted. The actions we are taking will enable us to support a narrowed list of priorities that are focused on the fundamentals of serving our customers and frontline teams. We remain confident that our industry is strong and that the opportunity for Advance to succeed on the road ahead is significant,” Carr wrote.
The company has more than 60,000 workers, operates thousands of stores and also has several hundred Worldpac operations which focus on ecommerce. Worldpac is to be sold as part of the company’s decisions announced Wednesday.
