Regis announced Thursday that it plans to eliminate about 290 jobs across the U.S. and Canada. The company expects to save about $18.7 million a year as a result of the job cuts.
The move is part of the company’s transition to a fully franchised business model.
In a statement, Regis President and CEO Hugh Sawyer said that the company recognizes the changes “represent a deeply personal impact” to employees and their families. He acknowledged this phase of the transformation is “difficult,” but that the job cuts are needed to “properly allocate capital and human resources to support investments in our rapidly growing franchise business.”
Regis first announced its plans to transition into the all-franchised model in August. By that point, the company had already begun the restructuring, having closed 214 salons and sold 767 more to franchisees over the course of the year.
Sawyer said Regis is ahead of schedule in its restructuring effort, which is why the job cuts are coming so early in the year.
The note of progress comes despite the fact that earlier this month, Regis said it planned to reacquire 200 Regis-linked salons from The Beautiful Group early this month—to avoid further financial losses Regis would incur from The Beautiful Group’s own troubles.