Chico’s cuts go beyond 165 employee layoff

FORT MYERS, Fla. – WINK News dug deeper into the massive layoffs at Chico’s, and the cuts go further than we first reported. Around 240 positions were slashed, 165 people are out of work and 120 stores are closing.

On a conference call today, the CEO of Chico’s elaborated on the layoffs, but the company still won’t answer our specific questions about the cuts.

“The positions eliminated were across all levels of management and across all functional areas,” said CEO of Chico’s David Dyer.

He said the company is trying to cut costs, and by eliminating 240 positions, Chico’s will save $38 million annually.

“Although this action is difficult it was necessary to achieve the long-term growth plan of our organization,” Dyer said in the fourth quarter earnings report conference call.

Other plans include the closing of 120 stores in the next three years.

During the recession, Chico’s received more than $3 million in taxpayer money to expand. WINK News checked with Lee County, and despite the massive layoff, Chico’s still meets it’s obligation to provide more than 1,403 jobs throughout the end of this year.

After the closing bell on Thursday, Chico’s stock price rose over 2.5 percent.