Home Depot Cuts 10% of Jobs at Atlanta Headquarters

Home Depot Cuts 10% of Jobs at Atlanta Headquarters

Jan. 31 (Bloomberg) -- Home Depot Inc., the world's largest home-improvement retailer, cut 10 percent of the workforce at its Atlanta headquarters, or 500 employees, to focus on stores during the worst housing slump in 26 years.

``We're operating in a tough business environment, and we expect that to continue into 2008,'' Home Depot spokesman Ron DeFeo said today in an interview. ``We're committed to investing in our stores.'' The job cuts are the largest at its headquarters, and employees were informed today, he said.

Shoppers have slowed purchases as their home values declined and gasoline prices climbed to $3 a gallon. Analysts predict Home Depot will have its first annual decline in revenue for the 12 months through Feb. 3.

``The company is operating in a tough environment, so tight control of expenses is important,'' Colin McGranahan, an analyst with Sanford C. Bernstein & Co., said in an interview.

Employees received 60 days pay as severance, the spokesman said. Home Depot, with about 2,230 stores, last eliminated jobs at its headquarters in August 2006, when 300 people were fired.

Home Depot rose $1.26, or 4.3 percent, to $30.64 at 4:04 p.m. in New York Stock Exchange composite trading. The shares, which have fallen for three straight years on an annual basis, have gained 15 percent this year. The retailer has about 350,000 employees.

BLOOMBERG