DJ GNC Holdings to Reduce Op Expenses, Furlough Workers

By Stephen Nakrosis

GNC Holdings Inc. on Friday said it planned to reduce operating expenses and furlough workers as it deals with the continued impact of the Covid-19 pandemic.

"Given the unprecedented economic disruption caused by this health crisis, management has implemented measures to reduce expenses and maintain flexibility to manage through these challenging times," the company said.

GNC said operating expense reduction will include a hiring freeze and the elimination of corporate merit increases, along with other initiatives.

Costs across the business will be reduced with the exception of digital capabilities, GNC said.

The company also said "a significant portion of our store and corporate associates across all levels of the organization" will be temporarily furloughed. "Furloughed associates will maintain health benefits in GNC sponsored plans with 100% of the premium funded by GNC throughout at least the month of April," the company said.

"These decisions were extremely difficult but necessary as we navigate the challenges ahead of us. We are focused on our people and our business, and because of that we had to take decisive action," said Ken Martindale, GNC's chairman and chief executive.

GNC Holdings sells health and nutrition products.

--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

April 03, 2020 17:04 ET (21:04 GMT)

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