Restoration Hardware to Cut 100 Jobs
Restoration Hardware Inc. will eliminate 100 positions at its corporate headquarters in Corte Madera, CA. The downsizing is expected to result in $3.5 million in savings after severance and outplacement charges, and $9 million annually.
The company attributed its actions to softness in the home furnishings sector. Management did not indicate whether its catalog, online or retail operations would bear the brunt of the cuts.
The company has been expanding its direct operations, launching the Restoration Hardware Outdoor Catalog and the Restoration Hardware Gift Catalog in 2006, and the Restoration Hardware Bed & Bath catalog during its fiscal first quarter of 2007. Direct-to-consumer revenue, which amounted to $58.6 million during the quarter, made up 41.2% of its net revenue, up from 31.7% during first quarter 2006.
During its most recent quarter, Restoration Hardware employed just under 4,000 workers.
