Atlanta, GA, August 30, 2006--According to the Atlanta Journal-Constitution Home Depot told employees today that it will lay off 300 workers at the company’s Cobb County headquarters to offset a recent uptick in costs for its store operations, according to an internal memo.
The company employs about 5,000 at headquarters and has undergone several consolidations since Bob Nardelli took became Home Depot’s CEO in 2000.
The reduction announced Wednesday, according to the newspaper, is related to Nardelli's decision to spend more on the company’s stores in the second half of the year.
Last month the company said it will be adding 5.5 million hours in manpower at the stores and rolling out several customer service initiatives that would cost about $350 million, including about $85 million in added payroll expenses.
The ramp-up comes during a seasonal slowdown that's expected to be even slower than usual this year due to a sluggish housing market. Instead of slowing down Home Depot store operations, though, Nardelli, chairman and chief executive, says he decided to beef up store staff and continue spending on customer service initiatives as strategic moves to hold market share.
