Canadian home improvement retailer Rona Inc said today that it will be eliminating positions across its network to simplify its organizational structure and become more efficient.
The company indicated that while its head office will remain in Boucherville, Quebec, it will be cutting 500 positions across Canada within the Rona network of 425 corporate and affiliated stores. Employees are said to be supported through the transition, however it is unclear specifically what employees will be impacted, or where they predominantly are located.
The new structure, details of which were not provided, is expected to simplify the way the company operates. The transition plan is expected to position the firm to be a leader in the home improvement industry within Canada and benefit stakeholders “in the long run.”
Rona stated that the changes are a result of the need to “adapt to new market realities,” within the current economic downturn.
READ: Lowe’s To Sell Canadian Operations For US$400 Million
The layoffs follow a decision last year by Lowe’s Companies to sell its Canadian unit, which included Rona, to Sycamore Partners for US$400 million. At the time, the sale included 450 locations across the Rona, Lowe’s Canada, Reno-Depot, and Dick’s Lumber brands.
Rona had initially been acquired by Lowe’s several years prior in 2016, for US$2.4 billion.
Information for this briefing was found via Edgar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
