UPDATE: Dollar General Corporation Announces Corporate Restructuring to Drive Stronger Growth, 225 Jobs To Be Eliminated

Dollar General Corporation

today announced that, as part of a broader initiative aimed at proactively improving efficiencies and reducing expenses, the Company is restructuring its corporate support functions to eliminate approximately 255 positions. Substantially all of the eliminations are effective immediately. "Over the last several months, we have taken a hard look at our cost structure and are streamlining our support functions to improve our financial flexibility while positioning us to better serve our customers and to capitalize on long-term growth opportunities. This restructuring should allow us to continue strengthening our market leadership position and deliver long-term value for our shareholders," said Todd Vasos, chief executive officer of Dollar General. The Company currently projects that it will incur a pre-tax cash expense of approximately $7 million in the third quarter of 2015 relating to this restructuring for one-time severance-related benefits. The restructuring includes approximately 115 vacant positions. All impacted employees have been notified. Positions at the store level will not be impacted by this restructuring. Looking ahead to fiscal 2016, Dollar General expects to continue its expense control and reduction initiative by implementing a more rigorous budgeting process that will target cost savings in specific budget categories. Dollar General plans to report its third quarter 2015 financial results prior to the market open on December 3, 2015.