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Federal layoffs begin during government shutdown
24Sight News' Tom Lobianco joins LiveNOW's Austin Westfall to discuss the federal layoffs that have begun as a result of the government shutdown.
Carter's, a children’s clothing retailer known for carrying its popular OshKosh B’gosh brand, will be closing 150 stores and cutting 300 jobs over the next three years.
Carter’s announced the plans in a call and a fiscal third quarter report released on Monday.
Carter’s closing 150 stores
By the numbers:
According to the report, Carter’s plans to close 150 low-margin stores in North America. The company also said it will suspend new U.S. openings of its current store model.
FILE: Children's clothing displayed at store. (Credit: Fabian Sommer/picture alliance via Getty Images)
USA Today reported that roughly 100 of those stores will be shuttered by 2026.
In addition, the clothing retailer will eliminate 20-30% of its product choices in order to create a "more unified, global Carter’s product assortment."
Carter’s cutting 300 jobs
Dig deeper:
Carter’s also announced plans for a 15% reduction in office-based jobs.
This 15% reduction equates to about 300 jobs, said CEO Douglas Palladini, according to USA Today.
In doing so, the company said it is expected to save about $35 million annually and bring structure more in line with the current size of its business.
Why Carter’s is closing many stores
Big picture view:
Carter’s said the decision was due to changes in its customer base, along with higher tariffs – one of the largest drivers of lower margins and increased costs.
Stores closures, layoffs in 2025
Other companies, including JCPenney, Rite Aid, Kroger and Joann have announced store closures this year. Companies like Amazon, Microsoft and Starbucks have also announced layoffs.
RELATED: 2025 layoffs: List of companies cutting jobs this year
Starbucks announced last month that it was laying off roughly 900 non-retail employees and closing some store locations in the U.S. and Canada.
Starbucks CEO Brian Niccol released a letter Thursday, obtained by the Associated Press, explaining that an assessment of Starbucks locations found that many of them were financially underperforming or weren’t creating an environment customers expect.
The Source: The information from this story was provided by Carter’s fiscal third quarter report. USA Today, previous FOX Local reporting also contributed. This story was reported from Los Angeles.