IHOP CUTTING $3 MILLION, 40 JOBS.Byline: Brent Hopkins Staff Writer GLENDALE - IHOP IHOP International House Of Pancakes (restaurant chain) iHOP Information Hyperlinked Over Proteins IHOP International House of Prayer IHOP International H2O Project IHOP International House of Pain Corp. will cut 15 percent of its work force - roughly 40 corporate jobs - the restaurant chain announced Tuesday, as part of its two-part strategic reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. . The pancake house operator announced a significant business shift in January, saying it would stop financing its franchisees and stop opening company-owned stores. Half a year into the plan Tuesday, executives announced the practical ramifications ramifications npl → Auswirkungen pl of the decision: a consolidation of the finance and development departments, a change of operations management, 40 fewer jobs and $3 million in annual savings. The move will cost IHOP $1.5 million, with the majority of one-time charges coming in 2003. ``We figured out how we can be a better organization,'' said Julia Stewart, IHOP's president and chief executive officer. ``That took time and effort to see what it would look like.'' Staff cuts will come at both the Glendale headquarters and in field offices, though Stewart did not have specifics. With the company drastically scaling back its involvement in new store development, from 85 in 2002 to 55 this year, to none in the future, the positions became unnecessary. Going forward, franchisees will handle all development. ``When they were doing 80 units a year, they were spending $120 million, which they're not doing anymore,'' said Mike Smith, a restaurant analyst with Fahnestock & Co. in Kansas City. ``They don't need people out looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. real estate and supervising construction. I'm surprised it wasn't more.'' The $3 million in savings pales in comparison to the more than $100 million saved by no longer developing restaurants, but Michael Gallo, a research analyst with C.L. King & Associates in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , said it would help in both stock buyback and the quarterly dividend. The firm will pay investors of record as of Aug. 1 a dividend of 25 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , payable Aug. 18. ``Going forward, as you get into next year, $3 million in savings is not insignificant,'' Gallo said. ``You're talking about a company with only 20-some million shares outstanding, so this is not a trivial item.'' The announcement did not much faze investors, as shares closed down 9 cents to $33.31 on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . Brent Hopkins, (818) 713-3738 brent.hopkins(at)dailynews.com |
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