ODP Corporation announces ‘Optimize for Growth’ restructuring plan

After a comprehensive review of its business units and in light of recent new business successes, including its recent entry into the hospitality industry, the company announced its “Optimize for Growth” restructuring plan. This initiative focuses on capitalizing on ODP‘s core strengths — including its supply chain and procurement expertise, robust distribution network, and strong B2B customer base — to accelerate growth in the B2B distribution and third-party logistics market segments, while reducing retail exposure and associated liabilities. The plan strategically realigns the company’s organizational structure, product offerings, and go-to-market strategies to target high-growth opportunities in the B2B marketplace, while also expanding into new enterprise segments, including hospitality, healthcare, and adjacent sectors. As part of the plan, ODP will prioritize investments in resources and infrastructure critical to its growth in the B2B sector, while reducing fixed costs associated with retail operations, including store and distribution center leases. Concurrently, the company will suspend growth investments in its consumer and retail business as it continues to optimize its retail store footprint. Despite reduced retail growth investments, ODP remains firmly committed to supporting and providing an exceptional service experience at its active retail locations, ensuring that customers continue to receive the top-tier care they expect. In connection with this plan, the company expects to incur costs in the range of $185M-$230M, which we anticipate will generate approximately $380M in EBITDA improvement and generate over $1.3B in total value over the multi-year life of the plan.