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SANFORD, N.C. -- The Pantry, operator of more than 1,600 convenience stores here, revealed details on its planned restructuring, including the release of 60 employees from the company, the Raleigh News & Observer reported.
The plan is an effort to trim costs by $6 million and offset lower gasoline margins, the report stated. The employees, mostly district managers and regional vice presidents, are based outside of North Carolina and have already been notified, company president and CEO, Peter J. Sodini, told the newspaper. He called the layoffs a cautionary move, the report stated. The Pantry employs more than 13,000 people throughout the Southeast, according to the report.
"This simply reflects the fact that gasoline margins have stayed very tight, and we're not going to gamble anymore with the world the way it is and crude [oil] at $82 a barrel," he told the paper. "We don't know when the climate is going to change."
The layoff announcement came along with the company's warning that its 2007 fiscal year and its fourth quarter of fiscal 2007 are expected to be impacted by lower gasoline margins.
In addition, Sodini told the Observer the company still plans to move its corporate offices to Cary, N.C., in 2009, however a site has not been selected to date.
Sodini also reiterated the company's slowed growth pace. He told the paper there will likely be no major acquisitions in the next four to six months. "There's nothing meaningful on the horizon," he told the paper.