Staples announces a shake-up

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FRAMINGHAM, Mass., Sept. 25 (UPI) -- Business supply retail giant Staples Inc. said it planned to close 30 U.S. stores, 45 more in Europe and shake up its management team.

Along with the reduction of its brick and mortar outlets, Staples said it would "increase investment in its online businesses ... initiate a multiyear cost-savings plan, and restructure its International Operations."

"Our vision is to establish Staples as the single-source product authority for millions of businesses," said Chairman and Chief Executive Officer Ron Sargent in a statement.

The goal is to achieve a pre-tax cost savings of approximately $250 million by the end of fiscal year 2015, Staples said.

Management changes include combining U.S. retail and Staples.com businesses with that division lead by Demos Parneros.

Joe Doody, already in charge of North American Contract and Quill.com will take charge of the firm's supply chain and customer service operations in North America, Staples said.

The plan includes accelerating closure of 15 U.S. stores to save $35 million in operating costs. In total, the firm said it would close 30 stores and move 30 outlets to smaller locations in fiscal 2012.

John Wilson will serve as the new president of Staples Europe, replacing Rob Vale, who is retiring after leading the European division for the past three years.