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18
Jun

OfficeMax to Lay Off 2,700 Managers, Assistant Managers Across 900 Stores

Author: Adam Fendelman, Category: Business

NAPERVILLE, Ill. – Office supply retailer OfficeMax in Naperville, Ill. said on Tuesday it will shed 2,700 manager-level employees at its 900 stores nationwide in order to reduce costs.

The company will lay off half of all assistant store managers and two-thirds of all store supervisors, a company spokesperson said on Tuesday. The void will be filled with lower-paid, on-floor associates who will focus on specific retail products. The layoffs are expected to be completed by the end of June 2008.

OfficeMax stores, which sell everything from desk chairs to paper clips, have struggled in a weakened economy. The retailer also faces stiff competition from office supply giant Staples. Credit Suisse on Monday dropped OfficeMax’s stock rating from “outperform” to “neutral” and lowered its target price to $20 from $25.

By Megan O’Neil