TJX Cuts Executive Pay and Jobs
By George Anderson
In a move not often seen in business circles, a dozen senior executives at TJX Cos. have agreed to take a 10 percent cut in salary to help the operator of T.J. Maxx, Marshalls, HomeGoods, A.J. Wright and Bob’s Stores get its business turned around.
The salary reductions were part of an announcement that the company would also be eliminating 250 headquarters and field office jobs in the U.S. and Europe.
The salary reductions and job cuts are expected to save TJX $18 million a year.
Company spokesperson Sherry Lang told the MetroWest Daily News that 80 jobs will be eliminated at the company’s headquarters in Framingham, Mass with another 80 in U.S. field offices. The remaining cuts will come out of Canada and the U.K. Twenty of the positions being eliminated are not currently filled.
Ben Cammarata, TJX’s chairman and acting chief executive, said in a released statement, “Operating with a low cost structure has always been key to our ability to offer customers great values. Upon a careful and comprehensive review of our headquarters operations, we have identified specific areas where we could provide necessary support and services at reduced costs and improved productivity. The decision to eliminate positions, although very difficult to make, reflects one of many measures our company is taking to reduce costs and grow our business profitably.”
Moderator’s Comment: Will the decision for senior executives to take a pay cut have a positive effect on company
morale and performance in light of its announcement it was also cutting jobs? –
George Anderson – Moderator
TJX Companies, Inc. Reduces Headquarters Staff and Senior Executive Salaries as Part of Strategy to Drive Profitable Growth – TJX Companies, Inc./Business Wire
- Retailer TJX cuts 250 jobs – MetroWest Daily News