Staples Layoffs: Company Makes Cuts As Office Depot Merger Faces Obstacle

January 28, 2016 | By Garrett Montgomery More

Staples is not commenting on the massive layoffs, which occurred this week. It has been confirmed that Staples, Inc. laid off hundreds of corporate employees the same day it was revealed that the largest office supply chain store in the world was having its merger with Office Depot blocked by the federal government.

Staples layoffs

The recent massive Staples Inc. layoffs are making headlines. On Monday, several sources revealed that Staples, Inc., the largest American office supply chain store, had laid off hundreds of workers.

One employee said it was a bloodbath while another added that the layoffs affected both senior and junior staff members. That same day, the company, which has over 2,000 stores worldwide in 26 countries, issued a press release where the office supply giant spoke about the changes it was making in hopes of getting better results, but never mentioned the layoffs. Ron Sargent, Chairman and Chief Executive Officer, said:

“We are streamlining the organization and building a simplified structure that will speed decision-making and enable us to focus on driving profitable growth. These changes will help us compete in a rapidly evolving marketplace, either as a standalone company or in combination with Office Depot.”

Sargent also revealed that Shira Goodman, president of North American Commercial, has been named president of North American Operations, and Demos Parneros, president of North American Stores and Online, resigned/was fired.

The chairman and CEO had the following to say about the employees:

“John, Shira and Otis have deep knowledge of Staples, and I’m very excited to work with them in their new roles as we position Staples for the future. I want to thank Demos for all he has done to help build Staples. Over nearly 30 years, he has played a significant role in making Staples the leader in our industry, touching countless people and developing many of our strongest leaders and associates. I will miss working with him as a valued colleague.”

Staples is also in the news for its fight with the Federal Trade Commission over the attempt to block its merger with Office Depot. In an effort to save the merger with Office Depot, Staples has offered to “bring some $600 million in contracts to office supply wholesaler Essendant, formerly United Stationers, which could presumably boost the business of much smaller company supplies retailers like ULINE and W.B. Mason.”

What are your thoughts on the Staples layoffs?

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