Hair care giant Regis Corp. has laid off 150 employees as part of its effort to trim $20 million in operating expenses this year, CEO Paul Finkelstein said Tuesday.
About half of the cuts came from various departments at corporate headquarters in Edina, which employs about 850 people. The balance of layoffs hit supervisors and beauty school educators throughout the country and the United Kingdom. No salons were affected, Finkelstein said.
"It's solely related to the fact that we're opening fewer stores," said Finkelstein, who notified employees on Thursday. "A significant portion of those job functions are to handle new store-builds and acquisitions. If they don't exist, those jobs don't exist."
Regis Corp. owns more than 10,800 salons, hair restoration centers and beauty schools under such names as Regis Salons, MasterCuts, Cost Cutters, Supercuts and Trade Secret.
Regis announced a series of cost-cutting moves in October after sales declined 1.6 percent in the first quarter. The company said it would slash its $75 million capital and acquisition budget by up to $40 million. It typically opens 1,000 stores a year. Regis announced this summer it would close 160 underperforming stores.
JACKIE CROSBY
