Chico's cuts 240 positions, closing 120 underperformers

Chico's FAS is eliminating 240 corporate management positions, will close 120 underperforming stores in the next three fiscal years.

Chico's FAS is eliminating 240 corporate management positions, will close 120 underperforming stores in the next three fiscal years and open 40 new stores this year, it disclosed in a conference call Thursday morning.

Seventy-five of the eliminated positions were open, meaning there were 165 layoffs. The cost-reduction moves will lead to a nearly $100 million savings in capital spending in 2015, according to the Fort Myers-based company, including $38 million saved from the jobs cuts.

"These actions were carefully considered against the backdrop of the retail environment," said David Dyer, president and CEO.

Chico's will typically close the stores as the leases expire and take a more careful approach with new-store openings. Executives noted the 40 new stores opening this year is down from the 60 to 70 range previously projected and lower than in previous years.

Specifics on store closures: there were 18 closures in the fourth quarter and about 35 stores — mostly Chico's and White House Black Market stores — will be closed in 2015.