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Home Depot Cuts 750 Jobs

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By DAVE SIMANOFF and JEROME R. STOCKFISCH, The Tampa Tribune

Published: December 4, 2007

BRANDON - The Home Depot is laying off 750 people locally and closing its call center in Brandon.

The Atlanta-based retail giant, known for its home improvement warehouse stores and bright orange work aprons, said the shutdown is a prudent business decision and part of a wider initiative to bring some customer service functions back into the stores.

Employees at the call center primarily helped Home Depot customers get prices and schedule appointments for installation services. Once the center closes on Jan. 28, the stores will handle those tasks.

"It's an effort to improve the customer experience, and also part of an effort to find savings from outside the store to help us invest in the store," said spokesman Stephen Holmes.

The Brandon office building, in an office park at U.S. 301 and Causeway Boulevard, cleared out after the early afternoon announcement. Employees were told they could have the remainder of the day off with pay.

"We heard the rumors," said Daina Harshbarger, a 21-year Home Depot veteran. "No one wanted to believe it. Everybody kept saying, 'It's just rumors.'"

Harshbarger said many employees were frustrated they would not be offered any kind of severance to allow them to transition to new jobs. "I'm really surprised," she said, "They're not doing the right thing. I'm just really saddened about it."

Several employees bemoaned the timing of the announcement.

"Most of the people are dependent on this job to get through the holidays," said Robert Colon, a 4-year Home Depot employee. "The decision could not have come at a worse time."
Home Depot is also closing two other call centers: one in Dallas, the other in Chicago. Each center employs about 100 people.

Holmes said the company will provide outplacement services and host career fairs to help people locate new jobs. Workers can also apply for positions at local Home Depot stores, he said.

Holmes declined to say how much Home Depot pays its employees at the Brandon call center.

According to the most recent survey information from the Bureau of Labor Statistics, which comes from May 2006, the mean hourly pay for telemarketers in the metropolitan area encompassing Tampa, St. Petersburg and Clearwater is $11.38 an hour, or $23,670 a year. The mean hourly pay for all sales workers in this metropolitan area is $13.34 an hour, or $36,060, according to the bureau.

Housing Downturn Hurt Retailer

As the nation's largest home improvement retailer, Home Depot faces two challenges: The downturn in the housing market has dampened demand for building materials, while the economic slump has pinched consumer confidence and, as a result, slowed retail spending.
Home Depot is still dealing with the highly publicized ouster of Robert Nardelli in January. The former CEO and chairman is generally credited with doubling the size of the company between 2000 and 2005, but blamed for failing to improve the company's stock price during his tenure. Nardelli's severance package was estimated to be more than $200 million; he was later hired as CEO and chairman of Chrysler.

Although the dour housing market has had an effect on Home Depot's business, Holmes said it would be erroneous to link the downturn directly to the layoffs.

'Life After Home Depot'

After the announcement, about 75 workers gathered at nearby Barnacles Restaurant on Providence Road to commiserate.

However, the atmosphere seemed more celebratory than funereal.

"There is life after Home Depot," said Carrie Campbell of Valrico, who was in the fifth training class for the call center when it opened 6 1/2 years ago.

Campbell said she considers her fellow employees in the special orders department as close as family, but she saw the writing on the wall when the housing market soured.

Bob Rios began working for Home Depot before the call center opened. He wasn't surprised by the announcement.

"Nobody was shocked," he said. "We were just sitting around waiting for the other shoe to drop."

Rios said he has heard newly appointed Home Depot CEO and Chairman Francis S. Blake talking about the need for the stores to have a more personal touch, with more in-store services. Rios said he figures that call centers don't fit in that scenario.

That's little comfort to Kayla Counts of Brandon, who has worked for Home Depot for six years.

"I thought they'd take care of their people a lot better," she said.

Alexis Madara, who began working at the call center in June, isn't worried about finding another job. She is, however, concerned about her customers.

"The customers are the ones who will suffer. We'll find other jobs, but the customers are going to be hurt, because there's no way the customers are going to be taken care of."

Reporter D'Ann White contributed to this report. Reporter Jerry Stockfisch can be reached at jstockfisch@tampatrib.com or (813) 259-8402. Reporter Dave Simanoff can be reached at dsimanoff@tampatrib.com or (813) 259-7762.

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