Philadelphia Pep Boys — Manny, Moe & Jack on Friday said it will cut 50 employees, freeze merit pay increases and implement other spending cuts as it seeks to return to profitability.
The company also said matching contributions to employees' 401(k) accounts and other retirement contributions are conditioned on the company meeting profitability targets.
Pep Boys said the job cuts represent 11% of its store-support work force. No store closures are planned, the company said.
The company said it recorded a pre-tax charge of $600,000 in the fourth quarter of 2008 for costs associated with the job cuts.
Last month, the company posted a third-quarter loss of $7.3 million.