Information from WYSH Radio
Ruby Tuesday announced Wednesday that it will eliminate 50 positions at its restaurant support center in Maryville.
The company, which has a restaurant in Oak Ridge, said the job cuts are in response to a cost review program on the heels of millions of dollars in reported losses during the past couple of years. The move is expected to save the company about $6 million a year beginning in 2015.
The company is also continuing to work with consultants on finding ways to reduce operating costs. Company officials said there will be “an expected charge of approximately $2.2 million for transition-related costs in second quarter fiscal 2014 in conjunction with this action.”
In a press release announcing the restructuring, J.J. Buettgen—chairman, president, and chief executive officer— commented: “Restructuring is difficult, and we greatly appreciate the contributions of the teammates that have been affected. These organizational changes were implemented to ensure we are strongly positioned to invest in brand repositioning initiatives, and we are aggressively focused on lowering our cost structure with no dilution to the guest experience. I am confident in our brand transformation strategy, and in the ability of our talented teams in operations and the restaurant support center to successfully execute our plans.”
Last month, Ruby Tuesday Inc. reported a first quarter loss of $22.2 million.
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