Add Job Cuts to Bed Bath & Beyond's Turnaround Plan

The situation at Bed Bath & Beyond (NASDAQ: BBBY) is becoming more dire as the home goods retailer continues making cuts. Its latest announcement revealed it would fire 500 workers, or about 10% of its workforce, mostly in management positions.

While the retailer touts the move as potentially saving it $85 million annually because it lowers sales, general, and administrative expenses, it still expects to incur net pre-tax charges of approximately $26 million associated with severance costs that will primarily be accounted for in its fiscal 2019 fourth quarter.

Even so, the company says it still has plenty of money available to buy back its stock as a sop to investors, having previously announced it will use $600 million for share repurchases, dividend payments, and debt reduction.

Source Fool.com