PARAMUS, N.J. - Toys R Us Inc. plans to cut 1,900 jobs and to close 27 Toys R Us stores and 37 Kids R Us stores in a drive to cut costs and boost its operating profits. <br>
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The toy and childen's apparel retailer said Monday it will take a $213 million pretax restructuring charge as a result of the moves in its fiscal fourth quarter ending Feb. 2. <br>
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The company has said the slumping economy, extensive remodeling costs and fallout from the Sept. 11 terrorist attacks have contributed to its recent earnings slump. <br>
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The layoffs would be from domestic stores, the company said. It did not immediately provide a current total of employees. <br>
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The company said the cuts would increase cash flow in 2002 and beyond and boost pretax earnings by approximately $25 million in 2002, and approximately $45 million annually beginning in 2003. Payroll savings associated with changes in support functions would account for $30 million of the $45 million. <br>
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Toys R Us had a third-quarter loss of $44 million, or 22 cents per share. For the first nine months of its fiscal year, the company posted a loss of $91 million, or 46 cents per share. <br>
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Toys R Us operates 1,609 stores, including 703 toy stores in the United States, 510 international toy stores, 184 Kids R Us children's clothing stores, 163 Babies R Us stores and 49 Imaginarium stores. <br>
