Dollar General Corp. is eliminating about 255 corporate positions, including about 115 vacant jobs, in an effort to cut costs and improve efficiency.
The discount retailer said store-level jobs won't be affected.
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Dollar General expects a third-quarter pretax charge of about $7 million for the move.
"Looking ahead to fiscal 2016, Dollar General expects to continue its expense control and reduction initiative by implementing a more rigorous budgeting process," the company said.
Dollar General has expected heightened competition as rivals Dollar Tree Inc. and Family Dollar Stores Inc. merged in July and previously said it would spend more on labor in the wake of Wal-Mart Stores Inc.'s February decision to raise hourly pay.
Dollar stores have taken market share from bigger rivals by offering less-expensive, everyday products and by scattering more small-footprint stores in locations that make it easy for shoppers to run errands quickly.
Dollar General has more 12,198 stores, while Dollar Tree's brands have more than 13,864.
In August, Dollar General reported second-quarter earnings slightly above Wall Street estimates as sales at existing locations grew 2.8%. It plans to report third-quarter results Dec. 3.
By Josh Beckerman