Parent of Carl’s Jr. Cutting Jobs, Other Costs to Boost Profit
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ANAHEIM — Carl Karcher Enterprises on Thursday began laying off about 60 of the 460 employees at its Anaheim headquarters and cutting corporate functions in a restructuring designed to trim annual operating costs by $10 million.
Those being laid off by the parent company of the Carl’s Jr. hamburger chain range from corporate vice presidents to blue-collar workers. The restructuring is driven by a “mandate from the board to increase profitability,” said Donald E. Doyle, the company’s president and chief executive.
The layoffs come less than a month after Karcher’s outside board members rejected a leveraged buyout bid by Karcher founder Carl N. Karcher, 75, and Freeman Spogli & Co., a Los Angeles investment group.
In December, Karcher board members strongly suggested that a restructuring was forthcoming. Board members directed management to deal “aggressively” with operating costs so that the company could “achieve its full (profit) potential.” And they hired Doyle, a former Kentucky Fried Chicken executive.
In Thursday’s trading on the NASDAQ market, Karcher’s stock was unchanged at $8.25 a share.
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