Staples announced today it will close 225 stores as part of an overall cost-cutting program expected to save the office supply retailer $500 million by the end of 2015.

Staples expects the savings to be generated by labor optimization and layoffs, along with changes made in its supply chain, marketing, IT hardware, customer service and non-product related costs. The immediate impact of these changes will not be seen during the first quarter of 2014, as Staples is projecting a decrease in sales for that period.

The exact number of workers impacted by the store closings was not released by Staples.

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Staples is the latest retailer to announce store closings following RadioShack and Sony along with layoffs at Best Buy. Staples closed 42 stores last year in North America, tied to other closings overseas, and downsized a further 40 locations. When the latest round of cuts are finalized the chain will have about 1,620 stores.

Staples has been facing increased competition and the merger of Office Depot and OfficeMax will only add to the stress being placed on the company.

The news was released along with the company's fourth quarter and year financial statement. At the same time the chain noted other changes made during the last year.

• Accelerated growth on Staples.com with sales up 10 percent in the fourth quarter*

• Ended 2013 with over 500,000 products on Staples.com versus 100,000 at the beginning of the year

• Rolled out new contract team-based selling model to accelerate growth beyond office supplies

• Aggressively reduced costs and achieved full year profitability in Europe

• Eliminated approximately $200 million of gross costs to fund reinvention growth priorities

• Eliminated over one million square feet in North American stores through 40 net store closures and 40 downsizes and relocations

• Re-launched brand with new "Make More Happen" campaign
  
  RadioShack set to close 500 stores nationwide 

"Total company sales for the fourth quarter of 2013 were $5.9 billion. Excluding $461 million of sales recorded during the 53rd week in fiscal year 2012, total company sales decreased four percent compared to the fourth quarter of 2012. Fourth quarter 2013 total company sales growth was negatively impacted by approximately one percent due to 109 store closures in North America and Europe during the 12 months preceding the fourth quarter of 2013. Changes in foreign exchange rates also negatively impacted total company sales growth by one percent during the fourth quarter of 2013," the company said in a statement.