CompuCom owner Office Depot puts 13,100 jobs at risk in shift to IT services

CompuCom owner Office Depot has announced plans to close 13,100 positions and shut down retail stores and distribution centres as it shifts it focus to B2B IT services.

In an SEC filing, Office Depot said that it will incur around $543m in restructuring costs until the end of 2023 as part of the move.

This includes a $30m cash investment in its supply chain and a $21m capital investment in its IT services business.

The remaining $492m is expected to consist of one-time costs to close an unspecified number of retail stores and distribution facilities. Office Depot said it is still evaluating when, and how many, stores and distribution facilities it will close.

Office Depot will reduce its headcount by around 13,100 roles during the three-year period until 2023 as a result of the closures - equating to more than a quarter of its total global workforce.

The office supplies and IT provider said the reductions will result in around $860m in net savings by the end of 2023.

The US firm said the measures will help it realign its business to business-to-business solutions and IT services.

Office Depot made a crucial pivot into the IT services space in 2017 when it acquired IT reseller CompuCom for $1bn. The deal added 11,500 new staff to Office Depot, including some 6,000 technicians.

The acquisition came after a failed takeover by Staples in 2016.

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• Topics
• Solution Provider
• CompuCom
• Office Depot
• solution providers
• restructuring