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butterbean · Joined: 21 Jun 2006 Posts: 2269

Home Depot to lay off 300 at HQ
Published on: 08/30/06

Home Depot told employees Wednesday it will lay off 300 workers at its Cobb County headquarters to offset a recent uptick in costs for its store operations, according to an internal memo.

Home Depot, which employs about 5,000 people at its headquarters, has undergone several consolidations since General Electric veteran Bob Nardelli took the helm in 2000.

The reduction announced Wednesday is related to Nardelli's decision to spend more on Home Depot stores in the second half of the year.

Home Depot announced this month that it was 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.

http://www.ajc.com/business/content/business/stories/0831bizdepot.html