Dollar General Cuts Jobs at Tennessee Headquarters Dollar General, a Fortune 500 company headquartered in Goodlettsville, Tennessee, has laid off around 60 corporate employees as part of its restructuring strategy. This decision comes after a year marked by significant financial challenges for the discount retailer. These layoffs include senior positions such as vice presidents, senior managers, and mid-level engineers, as well as analysts and assistants. Many of the impacted employees had been with the company for over a decade.
A company spokesperson acknowledged the difficulty of the decision, stating, “These decisions are never easy, but we believe this restructuring will help streamline operations and better serve our customers, employees, communities, and shareholders.”
Layoff Details and Impact The layoffs, which were officially announced on January 8, 2025, were based on several factors. These included whether job duties could be redistributed, potential cost savings, and the company’s shifting business priorities. Affected employees, aged between 24 and 71, were offered severance packages. However, these packages required employees to waive their legal rights under the Age Discrimination in Employment Act.
Financial Challenges for Dollar General Dollar General has been grappling with increased competition from big-box retailers and fluctuating stock values throughout 2024. Despite mild growth in same-store sales—rising 2.4%, 0.5%, and 1.3% across the first three quarters of the fiscal year—the company experienced significant drops in operating profits.
- Second Quarter: Operating profits fell by 20.6%, totaling $550 million.
- Third Quarter: Profits plunged further by 25.3% to $323.8 million.
Additionally, the company incurred $32.7 million in expenses due to Hurricanes Helene and Milton, which severely impacted operations in the southeast.
CEO Optimism Amid Challenges Dollar General CEO Todd Vasos emphasized that the company’s “Back to Basics” initiative contributed to steady sales growth. In the third quarter, net sales increased by 5%, reaching $10.2 billion. “While our core customer remains financially constrained, we delivered same-store sales near the top end of our expectations for the quarter,” Vasos explained.
Expansion Plans Despite Struggles Despite financial hurdles, Dollar General remains focused on expansion. According to CFO Kelly Dilts, the company plans to embark on an ambitious real estate strategy in 2025:
- Open 575 new stores across the U.S.
- Fully remodel 2,000 stores.
- Partially remodel 2,250 stores.
- Relocate 45 stores.
“Our goal is to enhance the associate and customer experience in our mature stores while driving incremental sales growth,” Dilts added during an investor call in December.
Stock Performance and Price Increases Dollar General’s stock value has experienced a sharp decline over the past year. Falling from $125 per share in August 2024 to approximately $69 per share in January 2025, the company dropped to No. 111 on the U.S. Fortune 500 list.
Moreover, a recent analysis by Bank of America revealed that Dollar General has raised its food prices in the Nashville area more than any other grocery retailer. Between 2019 and 2024, food prices at Dollar General increased by 36%, compared to an overall regional increase of 25%.
Looking Ahead As Dollar General navigates these challenges, its restructuring efforts and expansion plans signal a commitment to long-term growth. However, the company will need to address rising operational costs, maintain customer loyalty, and manage its financial stability in a highly competitive market.
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