“We can confirm fewer than 90 positions are being eliminated as we establish an outsourced model for our Enterprise Contact Center,” a company spokesperson said in a statement emailed Tuesday to sister site Retail Dive. “We are providing transition support for affected associates, including severance pay and outplacement services.”
The discount retailer, which also owns Family Dollar, is based in Chesapeake, Virginia. According to a WARN Notice published last month by the Virginia Employment Commission, the impact date for the affected employees is June 23.
On or about that date, Dollar Tree said in a memo to state officials that it expects to lay off about 32 people. Another 29 people will be let go on or about Aug. 25, and a final round of layoffs affecting another 29 people is expected around Oct. 27.
The retailer’s C-suite has almost completely turned over in the last 18 months. Dollar Tree last week announced that Mike Kindy, who formerly worked for rival Dollar General, is the new chief supply chain officer. CEO Rick Dreiling assumed that role in January. CFO Jeff Davis is also relatively new in that position after taking that role last summer.
Despite the leadership changes, the company says it sees significant growth opportunities. In a May 2 regulatory filing, it said that “over the long-term, we believe that the market can support more than 10,000 Dollar Tree stores and 15,000 Family Dollar stores across the United States, and approximately 1,000 Dollar Tree stores in Canada.”
Overall, Dollar Tree employed about 207,500 people in 48 states and five Canadian provinces as of Jan. 28. For the 2022 fiscal year ending Jan. 28, the retailer reported a consolidated net sales increase of 7.6% to $28.3 billion, gross profit of nearly $9 billion, and operating income of $2.2 billion. The company has over 16,300 stores under the Dollar Tree and Family Dollar banners.