Dollar General lays off about 60 corporate workersDollar General lays off about 60 corporate workers

In early January Dollar General laid off about 60 corporate-level employees at its headquarters in Goodlettsville, Tenn., according to The Tennessean. Multiple vice president positions were also eliminated. The discount retailer stated that the layoffs were part of a restructuring plan and occurred in the Store Support Center.

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Dollar General and other dollar stores have faced challenges over the last year. During the retailer’s third-quarter earnings call in December, CEO Todd Vasos noted that business declined during the final week of the month. A weaker third-quarter performance led the company to lower its expectations for the full fiscal year of 2024. Dollar General now projects net sales growth in the range of about 4.8% to 5.1%, down from the previous forecast of 4.7% to 5.3%.

Additionally, DG’s stock price plunged 44% in 2024. The 2024 hurricane season also impacted the retailer, causing more than $32 million in damages.

DG has been pushing its Back to Basics strategy since Vasos returned from retirement to reclaim the CEO position in late 2023. However, the focus of this strategy has been on changes at the store level. The retailer has reduced inventory, removed self-checkout lanes to allow workers to focus more on customers, and is updating stores with a refreshed look. DG also opened a new distribution center in Aurora, Colo.

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The warning signs have been there for layoffs, but much of 2024 was spent revitalizing the corporate workforce. As late as November, the retailer announced 13 executive promotions, with additional promotions made in June.

Not as bad as 2015

The latest layoffs are not quite as deep as when Dollar General overhauled its corporate sector in 2015 by slashing 255 positions. That move was part of a broader initiative aimed at improving efficiencies and reducing expenses.

In their own words

“These decisions are never easy, but we believe this restructuring will help to streamline and support our ability to best serve our customers, employees, communities and shareholders.” —Dollar General spokesperson in an emailed statement to Supermarket News.