3. Why Office Depot is hiring thousands of workers as its sales shrink

June 17th, 2016

Office Depot Inc. will hire 8,000 workers as the Boca Raton-based company ramps up for an expected increase in traffic at its stores across the country.

Contrary to analysts’ predictions, the office supplies giant (Nasdaq: ODP) is unexpectedly increasing its workforce as it reels from a recent failed buyout by competitor Staples Inc., store closures and falling sales.

“As we gear up for the busy back-to-school season, hiring additional associates in our retail stores is essential so that we provide our customers with a great shopping experience,” said Lynn Gross, vice president of human resources for retail at Office Depot, in a statement.

The company is hiring 33 percent more workers than it did for its previous back-to-school season.

Office Depot says it will hire the additional sales consultants, stock associates, and cashiers during July, August and September — peak months for back-to-school shopping. The jobs will be temporary and hourly. Hiring events will be held in Office Depot and OfficeMax stores nationwide on July 12-14 from 3 p.m. to 8 p.m.

Office Depot did not specify how many of the positions would be temporary, and how many of them would be in South Florida.

The company, which reported a 9 percent drop in sales year-over-year to $3.5 billion in Q1, typically sees its shares rise when announcing store closures and layoffs. But Office Depot’s stock was up more than 2 percent to $3.38 a share on Wednesday morning following the announcement. The company’s shares recently hit its 52-week low on May 17, the day after its acquisition agreement with Staples was officially resolved.

Its 52-week high was $9.25 a share on June 19, 2015.

Source: SFBJ

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