Canadian Tire to cut 3% of workers on weaker consumer demand
Published: 12:51 09 Nov 2023 EST
Canadian Tire Corporation Ltd on Thursday announced plans to reduce its workforce by about 3% in the fourth quarter, citing softening consumer demand.
The iconic Canada-based retailer said it expects to take a charge of between $20.0 million and $25.0 million in its fourth quarter in connection with the move, while expecting to realize annualized run-rate savings of about $50.0 million.
Canadian Tire also noted it will eliminate the majority of current job vacancies that will result in a further headcount reduction of 3%.
At the same time, the company revealed that it will raise its annual dividend by 1.5% to $7 per share, or $1.75 paid quarterly, the 14th consecutive year it increased its investor payout.
The dividend increase comes even as Canadian Tire swung to a third-quarter 2023 net loss of $1.19 per share from a profit of $3.14 per share a year earlier.
Its revenue for the period inched up to $4.25 billion from $4.23 billion, while the company’s consolidated comparable sales for the quarter fell 1.6%.
Shares of Canadian Tire slipped 2% to $140 in midday trading on Thursday and have fallen 5% year to date.
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