Office Depot

Office Depot - the supplier of goods for office and technological solutions for the companies of small and medium business and also industrial enterprises through completely integrated omnichannel network including for September, 2018 about 1,400 shops, online of a sales point, sales specialists and technicians.

History

2020: Reduction of 13.1 thousand jobs and emphasis on IT

In the middle of May, 2020 it became known of intention of the world's largest retail network selling office supplies and office products Office Depot to reduce 13.1 thousand jobs, to close retail stores and commodity distribution centers.

The number of the closed shops and the centers in the company cannot call yet — now they estimate perspectives of each of them. It is going to complete restructuring by the end of 2023.

The world's largest seller of goods for office Office Depot reduces 13 thousand jobs and focused on IT services

Office Depot said that these measures will allow to concentrate on B2B-solutions, business on rendering IT services and to cut down fixed expenses. Everything as calculate in the company, by the end of 2023 the restructuring will allow to save $860 million.

Staff reduction and restructuring will involve one-time costs in the amount of $543 million. From them — $194 million funds expenditures, including $30 million capital costs of a supply chain and $21 million capital costs of IT-Business.

The specified money will be taken from profit on current transactions and from the available cash, reported in the company.

Office Depot began reorientation to solutions for commercial customers some time ago. In November, 2019 the network announced creation of ODP Corp holding, including two of its B2B-divisions of CompuCom and Business Services.

Earlier, in August, 2019, the retailer was recognized that the main part of his revenue is created by solutions for the commercial sector, but not retail.

In 2017 Office Depot for $1 billion purchased CompuCom — large IT service provider whose clients are more than a half of the companies from top-10 the list of Fortune 500.

Commenting on financial results for the first quarter 2020, the chief executive of Office Depot Jerry Smith, said that his company suffered from COVID-19 pandemic, however business of CompuCom helps it in these hard times as its products were demanded during an era of remote work.^[1]

Notes