![Office Depot, OfficeMax Said to Discuss Merger Under Pressure Office Depot, OfficeMax Said to Discuss Merger Under Pressure](https://api.time.com/wp-content/uploads/2014/05/162142729.jpg?quality=85&w=2400)
By Dan Kedmey
Office Depot has announced plans to shutter 400 stores, and judging by the market’s reaction, the decision couldn’t have come soon enough.
The ailing retailer’s shares climbed 10 percent Tuesday after it made the announcement in its first quarter earnings. The company estimated the closures would generate annual savings of $75 million by 2016.
The company made an operating loss of $79 million for the first quarter, driven by $96 million in charges related to its merger with OfficeMax in November.
But both Office Depot and its chief competitor Staples have struggled with declining sales as customers shift to online outlets. Office Depot currently has 1,900 stores across the US.
More Must-Reads from TIME
- The Reintroduction of Kamala Harris
- IVF Changed America . But Its Future Is Under Threat
- The 7 States That Will Decide the Election
- Inside Sam Bankman-Fried's Siege of D.C.
- Do You Really Store Stress in Your Body?
- The Rise of a New Kind of Parenting Guru
- The 50 Best Romance Novels to Read Right Now
- Can Food Really Change Your Hormones?
Contact us at letters@time.com