The California-based retail company Wet Seal has been in the news for more reasons than just advertisements. Over the past year the large retail employer has faced public scrutiny for alleged employee discrimination claims. The previous public statements about the retailer may have foreshadowed the current business planning the company is under taking.

It was reported that as part of the California retailer’s business planning model the company had an employee reduction that eliminated 35 employment positions. One of the eliminated positions was the chief operating officer, who was also the president. The employment reduction is expected to create a net savings for the company in the amount of $5.5 million. In total the reduction eliminated only three field positions and affected 32 corporate office positions.

In addition to the employment restructuring, the company is reportedly seeking a repurchasing program for company shares. The repurchasing program is intended to repurchase shares in the amount of $25 million. The company reportedly views the repurchase program as a positive aspect for its shareholders. As an overall goal of the company’s current business planning initiative, the company hopes to create a positive upswing for their product.

Along with the intent to implement a repurchasing program, the company is expected to invest in their human resource department. The company is expected to invest $1.9 million per year as it works with the U.S. Equal Employment Opportunity Commission.

When companies take steps towards changing its corporate structure or business formation, there are many variables that need to be taken into consideration for such an overhaul. An experienced attorney can ensure a new business plan is correctly implemented to meet a company’s goals.

Source: Orange County Register, “Wet Seal losing 35 jobs in effort to cut costs,” Lisa Liddane, Feb. 4, 2013