Dick's Sporting Goods Slashes Workforce; Stock Plummets

PITTSBURGH, PA — Pittsburgh-based Dick's Sporting Goods on Tuesday announced what the company called a "business optimization" that resulted in layoffs Monday, primarily at its customer service center.

Dick's didn't say how many positions were cut, but a source told Bloomberg News that 250 positions were eliminated.

The cuts were made "to better align our talent, organizational design and spending in support of our most critical strategies while also streamlining our overall cost structure," the company said in a news release.

Dick's expects to incur approximately $20 million in severance expenses.

Dick's also announced Tuesday that retail theft is hurting its business and likely result in lower annual profits. The company reported second-quarter results that included a 23 percent drop in profits.

Shares of Dick's were down 22 percent as of late Tuesday morning.