Family Dollar lays off 100; some at corporate headquarters

Family Dollar lays off 100; some at corporate headquarters

Family Dollar lays off 100; some at corporate headquarters

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by Ely Portillo / Charlotte Observer

Ely Portillo / Charlotte Observer

Posted on March 10, 2011 at 5:38 PM

Updated Wednesday, Mar 23 at 11:29 AM

CHARLOTTE, N.C. -- Matthews-based Family Dollar is laying off more than 100 employees, some at the company's corporate headquarters, a week after the retailer turned down a New York-based hedge fund's $7.6 billion buyout offer.

About 1,400 people work at the retailer's Matthews offices, on Monroe Road. The number of affected employees based at the headquarters wasn't immediately available.

Affected workers will receive an undisclosed severance packages and career transition counseling, the company said.

Family Dollar is coming off a year in which the retailer had about $7.9 billion in sales and $358 million in profits.

Family Dollar employs about 50,000 people, most of them in retail positions at its 6,800 stores.

Since Nelson Peltz's Trian Hedge Fund bought the largest share of Family Dollar stock, just under 8 percent, the retailer has faced pressure to improve its profit margins and expand more quickly.

It has lagged chief rival Dollar General in both categories since the Tennessee-based chain went public in 2009. Family Dollar said the layoffs were not prompted by Trian's involvement, but were in response to a need to become a more efficient organization.

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