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Bed Bath & Beyond Cuts 7% Corporate Staff, Eliminates COO

Bed Bath & Beyond Inc. (BBBY) Tuesday announced plans to cut its corporate workforce by about 7%. The company also said it will eliminate the role of Chief Operating Officer.

Bed Bath & Beyond said the new initiatives is part of its ongoing transformation and near-term priority to curb costs. The company will cut 7% of its corporate staff at its headquarters in Union, New Jersey and at other select locations where corporate associates are based. COO Eugene Castagna will also leave, effective today. The job cuts will include vice presidents, directors, managers and professional staff.

Interim CEO Mary Winston said, "As we reset our approach to the business transformation underway, we are executing against 4 key near-term priorities including resetting the cost structure. While decisions that impact our staff are difficult, today's action is an important step in simplifying our corporate structure and ensuring our resources are aligned with the business we are managing today."

Bed Bath & Beyond estimates the organizational changes will see annual pre-tax savings of $30.7 million. For the remainder of fiscal 2019, the savings is forecast to be about $18.9 million.

The company expects to incur a restructuring charge of about $12 million in fiscal 2019.

Moving ahead, Bed Bath & Beyond said it continues to expect its fiscal year 2019 earnings to be at the lower end of its previously provided range of $2.11 to $2.20 per share. Analysts polled by Thomson Reuters expect earnings of $1.91 per share for the year.

BBBY is currently trading at $9.26, down $0.10 or 1.12%, on the Nasdaq.

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