MAY 11, 2023 — OUTSOURCING CUSTOMER SERVICE WITH LAYOFFS
The company has announced that it is outsourcing its customer service operations and laying off “fewer than 90 positions” at its corporate headquarters in Chesapeake, Virginia.
According to a company spokesperson, “We can confirm fewer than 90 positions are being eliminated as we establish an outsourced model for our Enterprise Contact Center. We are providing transition support for affected associates, including severance pay and outplacement services.”
MAY 19, 2022 — WEST MEMPHIS, ARKANSAS DISTRIBUTION CENTER CLOSING WITH 230 LAYOFFS
Family Dollar has announced the permanent closure of its distribution facility in West Memphis, Arkansas, after an FDA inspection found unsanitary conditions, including a massive rodent infestation that potentially contaminated merchandise distributed to 400 company stores in six states (Alabama, Arkansas, Louisiana, Mississippi, Missouri, and Tennessee).
The closure will impact 230 employees who will be separated in the near future.
According to a company spokesperson...
"Like most companies, we regularly assess our operational footprint to ensure we are running our business in the most effective and responsible way. As a result of that process, we determined the nearly 30-year-old facility in West Memphis would not be adequate to allow us to continue serving the needs and requirements of our stores and customers served by the distribution center."
"This was a difficult decision we did not take lightly, especially because of our outstanding team in West Memphis, our relationship with the community, and the partnership we have had with the State of Arkansas since 1994."
FEBRUARY 18, 2022 — EMPLOYEE ALERT - ACTIVIST CHANGES AFOOT?
Published reports…
“Dollar Tree Inc. shares rose as the retirement of Executive Chairman Bob Sasser fanned speculation that the retailer is nearing an agreement with activist investor Mantle Ridge, which is pushing for new leadership and a strategic review.”
“Mantle Ridge last year nominated a slate of directors to replace Dollar Tree’s board and urged the company to bring in Richard Dreiling, the former chairman of rival Dollar General Corp. The New York-based investment firm, led by former Pershing Square partner Paul Hilal, has also called on Dollar Tree to “fully develop the combined value” of its two main segments. The retailer operates the Family Dollar chain as well as stores under its own name.”
JANUARY 8, 2019 ACTIVIST ATTEMPTING TO FORCE ADDITIONAL CHARGES AT DOLLAR TREE.
Starboard Value, an activist investor, has spent approximately $370 million in Dollar Tree with the specific plan of reconstituting Dollar Tree’s Board of Directors, moving beyond “dollar” pricing to multi-priced products, and exploring a restructuring or sale of the company’s Family Dollar business.
SEPTEMBER 25, 2018 — Original post…
Chesapeake, Virginia-based Dollar Tree, a leading operator of discount variety stores, announced that it was closing its Family Dollar headquarters and support center in Matthews, North Carolina, and laying off 900 workers. Approximately 200 positions will be permanently eliminated and the remaining 700 employees will be offered an opportunity to relocate 325 miles to Chesapeake, Virginia. In a company statement, the decision is part of the company’s “ continuing integration of Family Dollar's organization and support functions. “The Company plans to consolidate its store support centers in Matthews, North Carolina and Chesapeake, Virginia to Dollar Tree's newly-completed office tower in the Summit Pointe development in Chesapeake.”
Dollar Tree's Executive Chairman, Bob Sasser, noted, "Our new 12-story, 510,000 square foot office tower represents the anchor of a dynamic campus environment serving the needs of our associates. We are eager to welcome all associates relocating to the Chesapeake area to participate in, and benefit from, the Company's next phase of growth."
While Dollar Tree's Chief Executive Officer, Gary Philbin, added, “"Leadership from both banners has continued to work together to integrate our two organizations and invest in future growth. By bringing our teams together into one location, we will further improve our ability to support our stores more effectively through enhanced collaboration, communication and teamwork. The completion of our expanded headquarters in Virginia will facilitate the most important phase of the integration and we are excited about the opportunities ahead for the Dollar Tree and Family Dollar banners."
The red flags were flying and the handwriting was on the wall. First, in July 2015 when Dollar Tree acquired Family Dollar for $9.1 billion and started integrating operations to reduce redundant operations and cut costs.
Again in early 2016 when the son of the founder stepped down as Family Dollar’s CEO signaling a possible corporate realignment and the company laid off approximately 370 employees in its Mathews headquarters.
Again in August 2016 when Dollar Tree announced the development of its expanded corporate headquarters in the city of Chesapeake, Virginia, noting “Chesapeake will be our center of growth for services shared across the entire corporation.”
And, again in late 2018 when the new building was finished and it was time to consolidate operations and close the Mathews, North Carolina operation.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?