Industry News | May 16, 2008
Jamba Juice Announces Staff Cuts and Slower Growth
The reorganization will result in the elimination of approximately 53 positions in Jamba’s support functions. These actions are part of an overall effort to reduce operating costs in light of, among other things, the company’s decision to moderate new company store growth in fiscal 2008.
Jamba says these efforts will help position the Company to best execute its strategy to "simplify healthy living." It expects to incur a pre-tax restructuring charge in fiscal second quarter of approximately $750,000 for the reorganization of the support functions.
As a further step in reducing operating costs, Jamba will close 10 underperforming company-owned stores in 2008 and terminate seven signed leases for unbuilt stores. It expects to open 35-40 new company-owned stores in 2008.
"Jamba’s strategy to transform to a healthy living company is not changing," says Paul Clayton, Jamba’s chief executive officer. "We are reorganizing our support functions and slowing down our growth of new company stores in order to focus our efforts on optimizing the performance of our existing stores.
"I would like to thank all impacted team members for their contributions to Jamba’s performance and unique culture. Their hard work has helped to provide Jamba with a solid foundation for future success.
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