By Adriano Marchese
Canadian Tire plans to cut jobs and keep vacancies unfilled ahead of the holiday season and said that it will increase its dividend and allocate additional money to buy back more shares.
The Canadian retailer said that it plans to earmark up to 200 million Canadian dollars ($145 million) to repurchase additional shares for cancellation, citing anti-dilutive purposes in 2024.
This is on top of the company’s plans to repurchase between C$550 million and C$700 million of its class A nonvoting shares announced a year ago.
Canadian Tire has also increased its annual dividend for the fourteenth consecutive year to C$7.00 a share from C$6.90 a share, an increase of C$1.5 since last year.
At the same time, the company said it expects to decrease its full-time equivalent headcount in the fourth quarter as part of its targeted staff layoff plans.
It said that it will also eliminate the majority of current vacancies which will have the equivalent effect of 3% reduction of full-time staff.
Canadian Tire said it expects to take a charge of between C$20 million and C$25 million in the quarter, but that it expects annualized run-rate savings of about C$50 million.
Write to Adriano Marchese at [email protected]
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